MAM
Titan Company shows strong recovery rate in Q2
NEW DELHI: Titan Company reported an 89 per cent recovery in sales in Q2 of FY 2020-21 led by sharp recovery in the jewellery division post the significant disruption caused by the Covid 19 pandemic in India in the first quarter of the fiscal.
The total income for the quarter was Rs 4,389 crore, including sale of gold bullion to the extent of Rs 391 crore, resulting in a decline of less than 2 per cent compared to the income of Rs 4,466 crore for the same quarter in the previous year.
The decline in total income excluding bullion sale was close to 11 per cent. The total income for the first half of the fiscal (Hl) was Rs 6,290 crore (including bullion sale of Rs 992 crore), a decline of 34 per cent against the income of Rs 9,461 crore in the corresponding period last year. The decline without considering the bullion sale was 44 per cent.
With the lockdowns being lifted in most parts of the country, the company was able to operate most of its stores across all its divisions. Customer walk-ins have started improving even as social distancing norms remain. The recovery rate of revenue improved substantially in the quarter, with the rate being 55 per cent for the watches and wearables division, 98 per cent for the jewellery division and 61 per cent for the eyewear division.
While the customer sentiment improved substantially in the quarter, there was greater willingness to spend on plain gold jewellery and gold coins rather than pure discretionary items, explaining the reason why the recovery rates in watches and eyewear and even studded jewellery within the jewellery division were lower.
The jewellery division recorded an income of Rs 3,446 crore for the quarter (excluding gold bullion sales) as compared to Rs 3,528 crore last year, a decline of 2 per cent. The watches and wearables business recovered well in the quarter to record an income of Rs 400 crore against Rs 719 crore in the previous year, a decline of 44 per cent.
The eyewear business also improved with revenues declining by 39 per cent in the quarter, recording an income of Rs 94 crore as against Rs 154 crore last year.
Other segments of the company comprising Indian dress wear and accessories recorded an income of Rs 23 crore compared to Rs 44 crore in the previous year, a decline of 48 per cent. Consequent to the recovery, the company declared a profit before tax of Rs 238 crore, compared to Rs 429 crore in the previous year, a decline of 45 per cent for the quarter. The result is after a provision of Rs 34 crore for dues from a broker relating to commodity hedging. Despite the profit in the quarter, the company has recorded a loss of Rs 97 crore in Hl compared to a profit before tax of Rs 952 crore in the previous year.
The jewellery division declared earnings before interest and tax (EBIT) of Rs 285 crore for the quarter compared to Rs 384 crore in the previous year and Rs 231 crore for Hl compared to Rs 826 crore in the previous year. The watch division reported a loss of Rs 4 crore for the quarter (EBIT of Rs 113 crore in the previous year) and loss of Rs 168 crore for Hl (EBIT of Rs 241 crore in the previous year). The Eyewear division turned around remarkably in the quarter with EBIT of Rs 9 crore (loss of Rs 31 crore in the previous year) and a loss of Rs 22 crore for Hl (loss of Rs 10 crore in the previous year).
Titan Company MD C K Venkataraman said, "The recovery that the company has witnessed in the quarter has been very satisfying and the positive consumer sentiment witnessed gives rise to hope that the festive period could be good for all the divisions. The company continues to gain market share in its key businesses. The focus on cost and capital employed has helped manage our bottom line and cash flows very well."
The principal subsidiaries of the company also performed well. Titan Engineering and Automation Ltd (TEAL) recorded revenues of Rs 167 crore (decline of 16 per cent) and profit before tax of Rs 25 crore (decline of 19 per cent) for Hl FY 2020-21.
CaratLane clocked a growth of 10 per cent and a positive EBIT in the quarter and ended with a revenue of Rs 194 crore (decline of 28 per cent) during Hl and a net loss of Rs 24 crore.
Brands
YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
