InvestorQ : Why did Titan report such a huge loss in the Jun-20 quarter? Was it part of the COVID-19 story?
Neelam Naik made post
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Why did Titan report such a huge loss in the Jun-20 quarter? Was it part of the COVID-19 story?

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Tushar Jambhekar answered.
8 months ago
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Titans consumer base is completely retail and with the lock down and Covid impact, the sales of both watches and jewelry is down. We should expect the same to continue until may be October when the festive and wedding season might brings some cheer.
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Priyanka N answered.
8 months ago
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For a long time, Titan was a darling among investors for its ability to sustain rich valuations. For the Jun-20 quarter, Titan reported net loss of Rs.270 crore on a standalone basis. In the Jun-19 quarter, Titan had reported net profits of Rs.371 crore.

Revenues for the Jun-20 quarter were sharply down by 62.3% at Rs.1862 crore. This can be largely attributed to the huge disruption caused by COVID-19. Most malls and retail outlets were closed and the operations have just about begun across stores.

During the quarter, Titan sold Rs.601 crore worth of gold bullion in order to reduce inventory in the light of the weak sales. Titan is expecting normalcy only by 2021. Most of the Titan stores were forcibly shut for these months leading to almost nil sales.

Due to the lockdown, the largest and most profitable jewelry segment saw revenues fall by more than 55% at Rs.1783 crore. The watches business saw almost a 90% slump in sales at Rs.75 crore and the eyewear business also shrinking by 80% in the quarter.

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