Titan - Q1FY14 Results - Nirmal Bang

- The result was below than market estimates in terms of EBITDA but Sales and PAT was ahead of market estimates.

- The Net Sales was up by 42% YoY and by 19.1% QoQ to Rs. 3087.8 crs.

- EBITDA was up by 15.6% YoY to Rs. 244.9 crs and down by 8.1% QoQ. The margin stood at 7.9% in Q1FY14 as against 9.7% in Q1FY13 and 10.3% Q4FY13. Jewellery business reported 140bps YoY margin contraction even as watch business profit declined by 370bps YoY.

- PAT grew by 17% YoY to Rs. 182.5 crs and down by 1.3% QoQ. The margin stood at 5.9% in Q1FY14 as against 7.2% in Q1FY13 and 7.1% in Q4FY13.

- The stock is currently trading at 30.7x on trailing basis.

- Outlook: Neutral

Source : Equity Bulls

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