On Monday, Titan Company reported a net standalone loss of Rs 270 crore for the June ended quarter when compared to a profit of Rs 371 crore seen in the same period last year. The company's standalone revenue during the quarter declined by 62.3 percent to Rs 1,862 crore against the same period of the last fiscal year.
"The disruption caused by the COVID-19 pandemic in India affected the performance of Titan Company severely with retail outlets closed for a major part of the quarter, resulting in a decline in income of 62 percent for the first quarter of the financial year 2020-21," said in its stock exchange filing.
Revenues for the quarter included the sale of bullion worth Rs 601 crore done to reduce inventory given the low level of sales due to the disruptions in economic activity.
Titan said that its operations were significantly impacted in April and May as stores were forced to remain shut. Even as stores started reopening in May, only 83 percent of all stores were open by the end of June 2020. The revenue recovery rate improved slowly the company said and as of June, it was 21 percent for the watches and wearables division, 77 percent for the jewellery division and 25 percent for the eyewear division.
The watches business was most impacted. It saw a 90 percent decline in income from Rs 715 crore in June 2019 to Rs 75 crore in June 2020.