The financial year as well as the last quarter of 2015-16 was an extremely challenging one for the Company. The challenges f a c e d were both on account of weak market conditions for all businesses and new regulatory restrictions for the jewellery business. Titan Company Ltd reported an income of Rs.l 1,176 crores for the year ended March 2016, registering a decline of 5.2% over the previous year. This performance c a m e in the backdrop of an environment where the consumer sentiment did not pick up as expected. Income for Q4 however declined by only 1.5%, a t Rs.2437.15 crores.
Profit before tax for the year declined by 17.5% to Rs.870.66 crores and net profit declined byl 4.2% over last year to Rs.705.85 crores. The strength of Company’s brands was tested in an environment of subdued sales across all retail formats of the Company as well as related categories. Weak consumer sentiment had an impact on retail sales across all businesses.
The Watches business of t he Company recorded a n income of Rs.l953.55 crores, a growth of 1.7%. This was achieved through planning a n d execution of various initiatives including new products and campaigns. The key highlight of the year was Titan’s entry into the world of smart watches through launch of ‘Titan Juxf. The income from Jewellery segment saw a decline of 7.6% at Rs.8717.40 crores. The absence of revenues from the Golden Harvest scheme for the first eight months of the current fiscal a n d the disruption caused by the industry wide strike in the last quarter contributed significantly to the decline in revenue. The year saw launch of many successful collections in jewellery as well as an effective wedding campaign.
The income from Eyewear business was Rs.371.58 crores, recording a healthy growth of 11.8% on the back of a n aggressive network expansion strategy. Other businesses of the company comprising Precision Engineering business, accessories and fragrances recorded a sale of Rs.235.17 crores, a growth of 1.3%. The year witnessed aggressive expansion of its retail network with a net addition of 82 stores by Watches, Jewellery and Eyewear businesses. As on 31st March 2016, the Company had 1283 stores, with over 1.7 million sq.ft of retail space delivering a retail turnover in excess of Rs.l 1,010 crores.
Mr. Bhaskar Bhat, Managing Director of the Company stated that “The year 2015-16 is behind us now. We are looking at opportunities of profitable growth while making investments behind our brands. The company will b e exploring new avenues for technology induction in products and retail in addition to enhancing the ‘digital’ skills a n d capabilities of the organization. The premium space too has done well for our brands and investments will be made in creation of highly differentiated products for the discerning consumer.”
The Company had declared an interim dividend of Rs 2.20 per share (220%) in March 2016. Considering the performance of the Company in 2015-16, the directors have not recommended any further dividend.
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