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Thursday, January 31, 2013

Titan Industries Quarterly Results Update

Titan Industries Ltd. posted a net profit of Rs. 203.73 crores for the Third Quarter supported by better sales, moving it up by 24.29 percent compared to last year's same quarter.

The revenues of the company were also rose by 23.67 percent to Rs. 3,017.80 crore compared with same quarter last year.

Earning Per Share (EPS) of the company now stood at Rs. 2.29 compared to Rs. 1.85 which has been recorded last year. Net Profit growth of 24 percent is best in past three quarters.

Jewellery business of the company reported much better than expected growth of 27% in revenues and it is quite impressive.

These signs of improvement however is not applicable to watches business of the company which reported a 10-qurater low sales growth of 10.6 percent despite improvement in its key brands and the price hike undertaken by the company in last one year.

Following is the earnings summary of the company for reference.

  • Standalone
Top of Form
Bottom of Form
Quarterly Results of Titan Industries
------------------- in Rs. Cr. -------------------



Dec '12
Sep '12
Jun '12
Mar '12
Dec '11






Sales Turnover
3,017.80
2,275.98
2,205.81
2,281.77
2,440.40





Other Income
22.01
23.82
25.02
25.19
24.44





Total Income
3,039.81
2,299.80
2,230.83
2,306.96
2,464.84





Total Expenses
2,735.05
2,026.57
1,993.69
2,074.36
2,227.22





Operating Profit
282.75
249.41
212.12
207.41
213.18





Profit On Sale Of Assets
--
--
--
--
--





Profit On Sale Of Investments
--
--
--
--
--





Gain/Loss On Foreign Exchange
--
--
--
--
--





VRS Adjustment
--
--
--
--
--





Other Extraordinary Income/Expenses
--
--
--
--
--





Total Extraordinary Income/Expenses
--
--
--
--
--





Tax On Extraordinary Items
--
--
--
--
--





Net Extra Ordinary Income/Expenses
--
--
--
--
--





Gross Profit
304.76
273.23
237.14
232.60
237.62





Interest
11.69
12.14
12.60
13.12
0.96





PBDT
293.07
261.09
224.54
219.48
236.66





Depreciation
14.19
13.03
12.32
12.49
11.92





Depreciation On Revaluation Of Assets
--
--
--
--
--





PBT
278.88
248.06
212.22
206.99
224.74





Tax
75.15
67.92
56.13
62.71
60.83





Net Profit
203.73
180.14
156.09
144.28
163.91





Prior Years Income/Expenses
--
--
--
--
--





Depreciation for Previous Years Written Back/ Provided
--
--
--
--
--





Dividend
--
--
--
--
--





Dividend Tax
--
--
--
--
--





Dividend (%)
--
--
--
--
--





Earnings Per Share
2.29
2.03
1.76
1.63
1.85





Book Value
--
--
--
--
--





Equity
88.78
88.78
88.78
88.78
88.78





Reserves
--
--
--
--
--





Face Value
1.00
1.00
1.00
1.00
1.00






 For Titan there are many challenges to be faced in future which also includes restriction of direct Gold import on 180 days credit which is currently restricted to 90 days by Reserve Bank of India (RBI), if this is approved by RBI then margins of the company can further expand by 50 basis points (half a percent). Given these challenges, company's valuation of 27 times FY14 estimated earnings appears bright and rich.

We may not see huge upside from current levels in future but one can consider it to be a part of their portfolio for normal gains.

Note : TITAN INDUSTRIES is a Shariah Compliant stock also and hence those investors who are following shariah guidelines can also invest in this stock. Its Ethical to invest in this particular stock as of today 31st January, 2013. We will update if this stock is removed from the list of Shariah Compliant Companies.