Why did Titan report tepid profit numbers for the Mar-22 quarter?

With tepid jewellery sales in the March quarter amidst store shutdowns, the profits did suffer, albeit marginally for Titan. Net profits of Titan Company for Mar-22 quarter fell 7.2% to Rs.491 crore. This was largely on account of poor show of jewellery sales. In Mar-22 quarter, jewellery sales fell 4.1% to Rs.6,132 crore, as a resurgence of the COVID pandemic in the form of Omicron resulted in a slew of partial closures of stores across India.

For the Mar-22 quarter, revenues were still up 3% at Rs.7,352 crore, but the impact on profits were due to the limited absorption of the committed fixed costs. Full year revenues for FY22 were 36% higher at Rs.26,411 crore for Titan Company. The next big bet is on Akshaya Tritiya sales, and it has reportedly been quite robust. Tanishq has made a major expansion into GCC and the US, even as watches and wearables grew sharply on yoy basis.