Business »  Topic »  Stock corner: ‘Reduce’ Titan Company, performance in Q2FY20 weak

Stock corner: ‘Reduce’ Titan Company, performance in Q2FY20 weak


Titan posted an overall weak quarter with 1% y-o-y revenue growth, 3% Ebitda growth (down 7% y-o-y in underlying terms, 4% below estimates) and 6% y-o-y decline in recurring PAT (~16% below estimate).

Titan’s Q2 print was weak and disappointing operationally even as management had already cautioned of weak revenue (sluggish jewellery sales) in its preview. Underlying Ebitda declined ~7% y-o-y dragged by weak leverage and sharp rise in staff costs despite gains from higher making charges due to surge in gold prices. Spike in inventory (up ~30% due to surge in gold prices) led to negative OCF for ...


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