Retail Newsletter May 05 to 09, 2014

Top News

Titan Q4 net profit at Rs7349.40 mn Titan Company Ltd has posted a net profit after taxes and share of profit / (loss) of associate company of Rs. 7349.40 mn for the year ended March 31, 2014 as compared to Rs. 7253.80 million for the year ended March 31, 2013.Total Income has increased from Rs. 102241.80 million for the year ended March 31, 2013 to Rs. 110476.10 mn for the year ended March 31, 2014.

The Company has posted a net profit of Rs. 7411.40 million for the year ended March 31, 2014 as compared to Rs. 7251.80 million for the year ended March 31, 2013. Total Income has increased from Rs. 102134.40 mn for the year ended March 31, 2013 to Rs. 110359.80 million for the year ended March 31, 2014.Titan Q4 margins stood at 10.64%.

The company has announced that the Board of Directors of the Company at its meeting held on May 06, 2014, inter alia, have recommended a dividend on the equity shares of 210% free of tax, viz. Rs. 2.10 per equity share (Previous year: 210% free of tax). The strength of Companys brands contributed to sales growth across all retail formats of watches, jewellery and eyewear.

The Watches business of the Company recorded an income of Rs. 1790.80 crores, a growth of 6.9%. This was achieved through meticulous planning and execution of key initiatives. The income from Jewellery segment grew by 6.5%, crossing the Rs. 8500 crores mark to Rs. 8632.03 crores. The income from other segments comprising of Precision Engineering, a B2B Business, the Eyewear business and accessories grew by 20.7% to Rs. 499.79 crores.

The year witnessed aggressive expansion of its retail network with a net addition of 125 stores by Watches, Jewellery and Eyewear businesses. As on 31st March 2014, the Company had 1078 stores, with over 1.5 million sq.ft of retail space delivering a retail turnover in excess of Rs. 10900 crores.

Bhaskar Bhat, Managing Director of the Company stated that The year 2013-14 was a challenging year given the economic environment that was subdued. The year also witnessed other adverse factors like the regulatory changes that impacted our jewellery business. The Company will however continue to invest in strategic initiatives taking into account our long term and sustainable growth plans. Given the expectations of our stakeholders and aspirations of our employees, we move confidently into the new financial year with aggressive plans.

ED investigates into Myntra over FEMA The Enforcement Directorate is investigating Myntra for possible violation of foreign direct investment (FDI) norms in the e-commerce sector, according to a media report. The investigation comes at a time when Myntra is in acquisition talks with e-commerce website Flipkart, the report added. The ED had recently sent a show-cause notice to Flipkart for alleged violation of Rs 1,400 crore under FEMA.

News Infocus

FTAs with raw material producing countries imperative to promote domestic G&J industry: ASSOCHAM In order to ensure secure, reliable and adequate long-term supply of raw materials for the domestic gems and jewellery industry, there is an urgent need for India to engage directly with producer countries through diplomatic channels such as free trade agreements (FTAs) with countries possessing key raw materials, an ASSOCHAM study said.

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Retail Newsletter May 05 to 09, 2014