RAPAPORT... Indian jeweler Titan Company enjoyed strong growth in sales and profit during the first fiscal quarter, attributing it in part to
the festival season and a rush to buy before the country’s goods and
services tax (GST) took effect in July.
Revenue for the quarter, which ended June
30, jumped 42% year on year to $634.8 million (INR 40.5 billion), the company
reported last week in results that included its subsidiaries. Its net profit,
meanwhile, nearly doubled, shooting up 97% to $37.3 million (INR 2.38 billion).
Jewelry was the main force behind that
growth, with sales in the category rising 56% to $525.5 million (INR 33.52
billion). The watches division recorded income growth of 2.4%, hitting $80.2
million (INR 5.12 billion) year on year. The quarter included the Akshaya Tritiya festival in April, a popular time for buying gold.
“Our jewelry business has delivered a stellar
performance in the first quarter due to a combination of one of the best
Akshaya Tritiya sales, a very successful gold exchange program, as
well as an element of advancement of sales in June 2017 in anticipation of
higher GST rates,” said Bhaskar Bhat, Titan’s managing director.
The GST system includes new taxes on
diamond and jewelry transactions, as well as additional levies for
manufacturing.
“Driven by the jewelry business, our
profits saw outstanding growth this quarter,” Bhat stated.
Titan also expanded its retail presence, opening
31 new stores during the three-month period for a total of 1,397 locations. Plans
for further expansion are in place for the second quarter, the jeweler said. |
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