Q3-2015: Titan q-o-q income, PAT and ad spends down

BENGALURU: Titan Company Limited  reported lower q-o-q Total Income from Operations (TIO) and Profit After Tax (PAT) in Q3-2015 as compared to the corresponding numbers reported in the immediate trailing quarter Q2-2015.

The company also spent 8.6 per cent less towards advertisement (ASP) in Q3-2015 at Rs 96.75 crore (3.3 per cent of TIO) as compared to the Rs 105.83 crore (2.9 per cent of TIO) in Q2-2015 and 18 per cent less than the Rs 118.04 crore (4.4 per cent of TIO) in the corresponding quarter of last year. (Refer to Fig A below).

Note: 100,00,000 = 100 lakh = 10 million = 1 crore

Over a 12 quarter period starting Q4-2012 until the current quarter (Q3-2015), Titan’s ASP shows an upward linear trend in absolute rupees, but a downward linear trend in terms of percentage of TIO. Titan’s simple average ASP in terms percentage of TIO during these 12 quarters is 3.6 per cent. The company’s highest ASP during the 12 quarters under consideration has been in Q3-2014 at Rs 118.04 crore (4.4 per cent of TIO) in terms of absolute rupees. In terms of percentage of TIO, ASP was highest at 4.7 per cent of TIO (Rs 103.44 crore) in Q1-2013 during the same 12 quarter period.

Titan’s lowest ASP during the quarters under consideration was in Q4-2013, both in terms of absolute rupees and percentage of TIO at Rs 66.63 crore (2.5 per cent of TIO)

Income and PAT

Titan’s TIO in Q3-2015 at Rs 2922.51 crore was 18.7 per cent lower than the Rs 3593.07 crore in Q2-2015 and 9.2 per cent more than the Rs 2675.77 crore in the corresponding quarter of last year. TIO shows a linear increasing trend during the 12 quarter period under consideration.

Titan’s PAT in Q3-2015 at Rs 190.73 crore (7.1 per cent of TIO) was 20.5 per cent less than the Rs 239.98 crore in Q2-2015 and 15.2 per cent more than the Rs 165.57 crore in Q3-2014. PAT shows a slightly increasing trend in absolute rupees and an almost flat to a slightly downward trend in terms of per centage of TIO during the 12 quarter period in this report.

Businesses and Brands

Titan has three revenue segments – watches having the brands –Titan, Xylus, Nebula, Sonata and Fastrack and Zoop; Jewellery with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

Jewellery contributes about 80 per cent to Titan’s TIO. Last quarter (Q2-2015), its jewellery distribution brands Tanishq and Goldplus from Tata showed an upsurge in retail sales by as much as 75 per cent and 84 per cent respectively. In the current quarter, Goldplus from Tata grew by 30 per cent, however, Tanishq disappointed with a drop of 4 per cent in sales.  Though the jewellery segment reported a 11.2 per cent y-o-y growth to Rs 2347 crore (80.3 per cent of TIO) from Rs 2111 crore (78.9 per cent of TIO), q-o-q, the segment reported a slump of 19.9 per cent from Rs 2929 crore (81.5 per cent of TIO).

The Helios brand from Titan’s Watches business segment in terms of sales also disappointed with a drop of 3 per cent in sales in Q3-2015. ‘Watches’ is Titan’s second largest business segment in terms of sales and contributes about 15-17 per cent to Titan’s TIO. Watches segment reported a y-o-y growth of 0.4 per cent to Rs 453 crore (15. 5 per cent of TIO) in Q3-2015 from Rs 451 crore(16.9 per cent of TIO) in Q3-2014, and a drop of 14 per cent from the Rs 527 crore (14.7 per cent of TIO) in Q2-2015.

The ‘Others’ segment reported 2.9 per cent drop to Rs 134 crore (4.6 per cent of TIO) in Q3-2015 from Rs 138 crore (3.8 per cent of TIO) in Q2-2015 and a growth of 15.5 per cent from Rs 116 crore (4.3 per cent of TIO) in Q3-2014.

Company Speak

Titan managing director Bhaskar Bhat said, “Titan Company, with a large portfolio of strong brands, operating in multiple industries, grew by over 9 per cent in the third quarter. This period, which is a festival quarter, faced heightened activity from e-commerce players participating in this gifting season. Going forward the market sentiment is looking good, with the fiscal budget from the new government coming up, drop in inflation and positive global factors like slump in oil prices. The company is gearing up for the last quarter with the launch of new products and advertising campaigns that are lined up, including activation from some brands.”

Latest Reads
Intel CEO Brian Krzanich resigns over relationship with employee

Intel Corporation CEO and member of board of directors Brian Krzanich today announced his resignation for a breach of company policy involving a relationship with an employee.

MAM Media and Advertising People
Louis Philippe launches new ad campaign #RiseAboveTheRest

One of India’s leading menswear brand Louis Philippe, from Aditya Birla Fashion and Retail, has come up with a unique ad campaign 'Rise Above The Rest', showcasing that true leadership is about taking decisions that leave a lasting impact.

MAM Media and Advertising Ad Campaigns
Taco Bell wants to make potato great again with new campaign

MUMBAI: Taco Bell is set to make its way into the hearts of potato lovers across India. The brand has just launched a unique potato centric take on the traditional taco. The all new Crispy Potaco will give this much-loved vegetable a new identity where it will no longer play the sidekick in most...

MAM Marketing Brands
HP urges people to use original ink in new campaign

MUMBAI: Information technology company HP (Hewlett-Packard) has launched a digital film Chikloo, as a part of the on-going initiative to promote its original ink and cartridges.

MAM Media and Advertising Ad Campaigns
Oyo expands footprint in China

MUMBAI: Indian budget hotel company Oyo Rooms has forayed into China to cater to the country’s burgeoning hospitality industry. Oyo Rooms. The Softbank-backed Oyo in China will have 11,000 exclusive-franchise or merchandised rooms across 26 cities. The service will be available in Xiamen, Kunming,...

MAM Marketing Brands
Johnson's celebrates 125 years with new campaigns

American multinational medical devices, pharmaceutical and consumer packaged goods manufacturing company, Johnson’s recently completed 125 years in the baby care products category in India.

MAM Media and Advertising Ad Campaigns
Team ITC makes India proud ,Wins a Silver Lion at the Young Lions Marketers Competition at Cannes

Two young women managers from ITC made India proud by winning the Silver Lion at the very competitive & prestigious Young Lions Competition at Cannes. The team comprised Raisa Chakravarty and Anupama Sharma from ITC's Personal Care Products Business. They had earlier won the India Challenge....

MAM Marketing Brands
Walmart sells $16 billion worth of bonds for Flipkart acquisition

American multinational retail corporation, Walmart, has decided to sell $16 billion worth of bonds to help finance its investment in Indian e-commerce giant Flipkart.

MAM Marketing Brands
Greenscape gets insects to tweet & spread awareness about e-waste

MUMBAI: Most people dump their e-waste just like their regular waste. This results in e-waste ending up in dump yards and landfills. To discourage people from doing this, Greenscape, India’s leading IT waste disposition company, joined hands with Dentsu Webchutney to launch #TinyBugsTweet campaign...

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories