Titan Industries – Impressive Recovery

Titan’s business has turned around during Q3FY10, but the sheer velocity of the rebound has come as a major positive surprise. The company reported an exceptional performance on all counts – revenues grew by 30% YoY to Rs 13.3bn, the EBITDA margin expanded by 225bps, while adjusted net profit doubled to Rs 754mn.

Strong growth was seen in both its jewellery and watch businesses, Titan reported a 30.2% YoY rise in revenues to Rs 13.3bn, as against our estimate of Rs 11.5bn for the quarter.

Jewellery volumes back in positive territory. The Raga, Orion and Titan models were outperformers, while Sonata witnessed a recovery during the quarter.

On account of cost-cutting measures across the board and better jewellery margins, Titan recorded a 220bps YoY expansion in EBITDA margin to 8% in Q3FY10.