Titan reported its earnings for the June-ended quarter on Wednesday. Revenue has come in line with estimates and there has been a beat on the EBITDA and net profit front. Further, gross margin has expanded to a 5-quarter high for the company. The Tata Group firm reported a consolidated profit of Rs 18 crore for the June quarter. The company had reported a net loss of Rs 297 crore in the corresponding period of the previous fiscal. Total income during the quarter under review stood at Rs 3,519 crore versus Rs 2,020 crore in the same period of previous fiscal. Ashok Sonthalia, CFO of Titan, discussed the performance with CNBC-TV18.

Sonthalia said, “The company has seen swift recovery from the second half of June, with lockdowns lifting gradually. That trajectory is continuing. It has gone from recovery to growth side now for certain categories. For jewellery, especially, we are in the growth zone, as we are progressing compared to the pre-pandemic levels. Other categories of the company also are smartly recovering and reaching towards 80-90 percent recovery levels. So, it is quite healthy.”

In fact, he said, “We are on track on the Tanishq store rollout strategy. We had slowed down in Q1FY22 because of COVID-19. We have done 11 stores and we will be opening 35 stores this year.”

“In terms of growth, we will be better than FY21. However, whether we will be better than FY20, that is the question. We are definitely gunning for that,” he further added.

The company is also focusing on gross margins. He mentioned, “We are focusing on gross margins, which is much more sustainable for us and there is a very structured programme in jewellery business unit and watch business unit where we can look at every element – there are small things, but they create a large impact. That programme is progressing pretty well.”

On demand, he said, “Demand could be a combination of things. It could be full forward demand, it could be missed events demand, which is now coming up. So, at this point of time, demand seems to be pretty strong.”

On jewellery business, he said, “Jewellery is a high indulgence category where people want to see it, but digital and omni is progressing pretty well. It is growing faster than retail store, though on a small base. If you combine digital and remote method of selling, then Tanishq sales is around 12-13 percent.”

(With inputs from PTI)

For the full interview, watch the accompanying video.

(Edited by : Dipika Ghosh)

First Published:Aug 5, 2021 2:16 PM IST