Titan Company shares gain 2% post Q2 results

Shares of Titan Company were trading over 2 per cent higher in morning trade on Monday following the company's September quarter results.

The watches-to-jewellery maker on Friday posted an 8.34 per cent rise in consolidated net profit at Rs 301.11 crore for the quarter ended September 30, 2018, dragged by provisions made for its corporate deposits in the IL&FS group.

The company had posted a net profit of Rs 277.93 crore in the corresponding quarter last year.

Titan said as on September 30, 2018, as a part of treasury operations, it has invested in inter-corporate deposits amounting to Rs 145 crore with IL&FS and its subsidiary.

The scrip was trading 2.56 per cent up at Rs 869.75 at around 9.50 am (IST), while the BSE Sensex was up 125 points, or 0.36 per cent, at 35,283.70 at around the same time.

Motilal Oswal Financial Services said, “Growing well across businesses, Titan continued gaining market share (particularly in jewellery business) in 2QFY19. Consolidated revenue growth, thus, came in better than expected at 27.5 per cent. Jewellery growth prospects remain robust. Encouragingly, watches and even eyewear now have started contributing to growth.”

The brokerage house has 'Buy' on Titan Company with a target price of Rs 1045.

During the second quarter, Titan's revenues from jewellery business jumped 29 per cent to Rs 3,582 crore, while revenues from watches grew by 17 per cent to Rs 676 crore.

Revenues from the eyewear segment went up by 19 per cent to Rs 120 crore in the said quarter.