28 January 2014
3QFY15 Results Update | Sector:
Retail
Titan Company
BSE SENSEX
29,517
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Free float (%)
S&P CNX
8, 911
TTAN IN
887.8
424/203
0/7/43
47.0
CMP: INR400
TP: INR470 (+17%)
Buy
M.Cap. (INR b) / (USD b) 355.5/5.7
Avg Val (INR M)/Vol ‘000 427/1320
Financials & Valuation (INR b)
Y/E MAR
Net Sales
EBITDA
Adj PAT
Adj.EPS
(INR)
Gr. (%)
2015E 2016E 2017E
124.6
11.7
8.7
9.7
16.7
148.0
14.7
10.9
12.3
25.7
43.4
28.2
35.8
32.7
9.2
178.9
18.4
13.7
15.4
25.8
54.2
28.5
38.9
26.0
7.4
BV/Sh.(INR) 34.8
RoE (%)
28.0
RoCE (%)
P/E (x)
P/BV (X)
34.9
41.1
11.5
Estimate change
TP change
Rating change
Jewellery in-line, watches drag 3Q
Titan’s (TTAN) 3QFY15 results were below estimates due to weak performance of
Watch division. Sales were at INR29b, up 9.4% YoY (est. INR29.7b), EBITDA grew
6.2% YoY to INR2.52b, with 20bp margin contraction to 8.7% (est. 9.5%). PAT
growth of 7.2% YoY to INR1.9b (est. INR2.1b) was impacted by delayed benefits of
hedging gains. As per management, 75% of total gains will be accrued in 4QFY15.
Jewellery division posts healthy performance despite absence of GHS:
Jewellery
revenue grew 11% YoY (in-line), with grammage growth of 25% (11% excluding
coins as base did not have coins), driven by Goldplus format (30% growth). The
11% revenue growth in Jewellery despite the absence of Golden Harvest Scheme
(typically contributed ~30% of sales) is healthy, in our view. Jewellery EBIT posted
12.5% YoY growth, with 10bp YoY margin increase to 9.6% despite a) mix
deterioration due to outperformance of Goldplus format and b) absence of
hedging gains. Higher production of jewellery from Pantnagar unit resulted in
lower tax rate. The 100% tax benefit from this unit is available for two more years.
LTL sales declined 8% in Tanishq, while it was up 30% in GoldPlus. TTAN added
15,000sqft of space in Jewellery in 3QFY15 (added 71,000 in YTDFY15).
Watch division disappoints:
Watch division posted 2% revenue decline (4%
volume decline) due to weak festive season sales and higher promotion activity in
e-commerce. World of Titan and Fastrack posted 3% and 6% SSS decline,
respectively. Segment EBIT margin eroded 70bp to 9.7%, with 9% YoY decline in
EBIT. Eyewear division posted 22% revenue growth.
Call takeaways:
a) Despite removal of 80:20 import restrictions, customs
authorities are not allowing shipments for domestic consumption on credit as of
now. However, TTAN has been procuring gold on credit from other sources (SBI
Gold Deposit etc). b) Net cash balance sheet as of 3QFY15 v/s net debt QoQ.
Valuation and view:
We raise the estimates marginally to incorporate the lower
tax rate. Healthy jewellery performance, despite absence of GHS, was a key
positive, in our view. Maintain
Buy
with a target price of INR470 (30x FY17E EPS,
three-year average P/E). Volatility in gold price is a key risk.
Gautam Duggad
(Gautam.Duggad@MotilalOswal.com); +91 22 3982 5404
Manish Poddar
(Manish.Poddar@MotilalOswal.com); +91 22 3027 8029
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Titan Company
Key Quarterly Charts
Exhibit 1: Segmental Snapshot
INR m
Total Sales
Watches
YoY Growth
Jewellery
YoY Growth
Others
YoY Growth
Total EBIT
Watches
YoY Growth
EBIT Margin
Jewellery
YoY Growth
EBIT Margin
Others
3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15
24,632 23,055 22,258 22,931 30,370 26,419 31,085 23,545 26,785 28,073 28,931 35,947 29,237
3,831
4,138
3,607
4,718
4,235
4,199
3,987
4,424
4,513
5,018
4,400
5,275
4,426
17.2% 27.0% 14.4% 13.0% 10.6%
1.5% 10.5%
-6.2%
6.6% 19.5% 10.4% 19.2%
-1.9%
19,859 17,997 17,755 17,239 25,152 20,933 25,866 17,981 21,107 21,573 23,253 29,294 23,474
25.6% 32.2%
7.8%
5.7% 26.7% 16.3% 45.7%
4.3% -16.1%
3.1% -10.1% 62.9% 11.2%
942
920
896
974
983
1,288
1,232
1,141
1,165
1,482
1,278
1,379
1,337
69.1% 16.8% 15.7% 49.4%
4.3% 40.0% 37.4% 17.2% 18.6% 15.0%
3.8% 20.9% 14.7%
2,436
2,310
2,293
2,653
2,994
2,955
2,443
2,871
2,463
2,927
2,665
3,356
2,691
480
534
504
547
512
456
385
464
471
602
482
666
428
-20.2% 722.8%
4.9% -18.7%
6.5% -14.6% -23.7% -15.1%
-7.9% 32.0% 25.4% 43.4%
-9.2%
12.5% 12.9% 14.0% 11.6% 12.1% 10.9%
9.6% 10.5% 10.4% 12.0% 11.0% 12.6%
9.7%
1,904
1,823
1,806
2,150
2,466
2,487
2,030
2,409
2,009
2,294
2,178
2,682
2,261
26.9% 69.9%
8.7% 35.5% 29.5% 36.5% 12.5% 12.0% -18.5%
-7.8%
7.2% 11.3% 12.5%
9.6% 10.1% 10.2% 12.5%
9.8% 11.9%
7.8% 13.4%
9.5% 10.6%
9.4%
9.2%
9.6%
51
(47)
(16)
(43)
17
11
28
(3)
-18
31
5
8
2
Source: Company, MOSL
Exhibit 2: Total space addition of 40k sqft in 3QFY15 (YTD 66K sqft addition)
Space (in ‘000 sqft)
Format
World of Titan
Fastrack
Helios
Tanishq
Goldplus
Zoya
Eye+
Total
3QFY15
No of Stores
426
157
43
169
33
3
341
1,172
Space
414
92
55
699
81
11
208
1,560
FY14
FY13
Space
375
76
64
521
74
7
154
1,272
FY12
FY11
Space
339
49
42
285
67
7
146
934
No of Stores Space No of Stores
401
401
364
150
49
163
33
2
280
1,078
86
66
632
81
7
221
1,494
140
46
146
31
2
224
953
No of Stores Space No of Stores
332
339
311
102
25
129
32
2
205
827
49
42
387
67
7
146
1,036
47
6
119
29
2
150
664
Source: Company, MOSL
Exhibit 3: Jewellery grammage growth of 25% during the quarter; 11% excluding coins
Volume Growth (%)
67
26
-5
31
8
-7
-21
6
12
-11
27
16
9
Sales Growth (%)
75
63
46
4
-4
-16
-21
3
-2
-10
-24
25
11
Source: Company, MOSL
28 January 2015
2

Titan Company
Exhibit 4: Jewelry: Key operating parameters
Jewelry
Volume Gr %
1QFY13 2QFY13 3QFY13 4QFY13
(16)
7
32
6
12
12
22
27
7
12
32
16
FY13
"Low single digit"
7
27
15
1QFY14 2QFY14 3QFY14 4QFY14 FY14 1QFY15 2QFY15 3QFY15
67
49
16
47
(4)
(3)
39
4
(21)
(10)
26
(15)
(2)
3
37
4
8
9
28
8
(24)
75
25
(16)
97
8
25
35
26
(10)
63
11
Source: Company, MOSL
(22)
Customer Gr %
(2)
Studded Share % 25
Sales Gr %
8
Exhibit 5: Gold Plus posted LTL sales growth of 30%
Jewelery
Sales Gr %
LTL Growth %
Stores
1
(7)
159
2QFY14
Tanishq
(20)
(21)
33
3QFY14
(8)
(15)
162
(25)
(30)
33
13
6
165
4QFY14
(14)
(18)
33
1QFY15
(8)
(13)
168
(21)
(24)
33
2QFY15
75
68
170
81
84
33
3QFY15
(4)
(8)
172
30
30
33
GoldPlus Tanishq GoldPlus Tanishq GoldPlus Tanishq GoldPlus Tanishq GoldPlus Tanishq GoldPlus
Source: Company, MOSL
Exhibit 6: Watches segment posted volume decline of 4%
3QFY14
4QFY14
1QFY15
2QFY15
3QFY15
Sales
LTL Stores Sales
LTL Stores Sales
LTL Stores Sales
LTL Stores Sales
LTL Stores
Gr %
Growth Growth (x) Growth Growth (x) Growth Growth (x) Growth Growth (x) Growth Growth (x)
World of Titan
0
(5)
373
12
8
401
8
2
406
15
10
417
0
(3)
426
Helios
Fastrack
LFS - Watches
Sales Gr (%)
Volume
Growth (%)
Net sales
INR b
33
12
6
10
(9)
7
7.5
(10)
4.55
50
151
NA
27
11
2
5
0
1
20.0
11
5.02
49
150
NA
23
16
2
20
9
5
10.4
9
4.4
45
148
NA
4
8
3
9
1
1
19.0
9
5.3
43
150
NA
(3)
3
2
4
(6)
(5)
(1.9)
(4)
4.4
Source: Company, MOSL
43
157
NA
Watches
Exhibit 7: Titan Eye+: LTL growth of 9%
Titan Eye+
Stores
Sales Growth (%)
LTL Growth (%)
2QFY13
209
32
19
3QFY13
215
21
14
4QFY13
224
46
40
1QFY14
229
26
21
2QFY14
228
35
25
3QFY14
270
14
2
4QFY14
280
35
21
1QFY15
300
28
13
2QFY15
323
34
19
3QFY15
341
22
9
Source: Company, MOSL
28 January 2015
3

Titan Company
Jewellery: Healthy performance despite absence of GHS sales
Jewelry sales expanded 11.2% at INR 23.5b (in-line with our expectations). 11%
growth despite absence of GHS (typically contributed 30% of division sales) is
healthy in our view. EBIT margins expanded 10bp to 9.6%; EBIT increased 12.5%
YoY.
Grammage growth of 25% is boosted by absence of Gold Coin sales in base.
Excluding coins, grammage growth stood at 11%, still healthy in our view.
Jewellery performance was driven by Goldplus which posted like to like and
overall sales growth of 30% each (no new store addition). This was on account
of various marketing and activation initiatives, per management. Management
has guided for 20% plus growth in Goldplus.
Tanishq posted like to like sales decline of 8% and overall sales decline of 4%.
Titan added 15k sqft of space in Jewellery in 3QFY15 (added 71k in YTDFY15).
Difference in retail format growth and reported jewellery sales growth is
attributed to higher purchases by L3 format (pipeline filling, new store opening
etc).
Jewellery margins were up 10bps to 9.6% despite mix deterioration as Goldplus
outperformed Tanishq and b) Lack of hedging gains. As per management, 75% of
the hedging gains will be booked in 4QFY15.
Despite removal of 80:20 import restrictions, customs authorities are not
allowing gold shipments for domestic consumption on credit as of now. All the
imports which are coming in for domestic consumption are being allowed only
on cash. Company is awaiting clarity from RBI on this. Meanwhile it is procuring
gold on credit from other sources – SBI Gold Deposit scheme. For Titan,
procurement is still predominantly on credit basis. Thus, balance sheet has
turned net cash vs. net debt QoQ.
Golden Harvest Scheme (GHS) was withdrawn in 1QFY15 and existing accounts
were prematurely redeemed in Aug’14 which boosted 2Q15 performance. Since
then, GHS has been re-started in November’15 in line with amended laws.
Benefits will come only after 2-3 quarters once it builds critical mass. New GHS
has 6 months and 10 months schemes as against earlier scheme of 11+1.
Imputed return in the new scheme works out to 12%/annum.
Lower tax rates:
Jewellery products assembled and sold out of Pantnagar
factory were higher than budgeted. Hence tax rates have been recalibrated to
21-22% vs. 25-26%. Two more years of tax break (100% break available). If
studded jewellery share increases, tax rate will go down.
We have lowered our tax rate assumptions for FY16/17e from 28% to 24%.
Watches segment: Weak discretionary spends in festive season
Watches segment posted sales de-growth of 1.9% driven by volume decline of
4% (volumes declined 10% in base). Segment posted muted performance on the
back of weak festive season sales. It was further exacerbated by aggressive
promotions by e-commerce portals during festive season.
As per management, Watch industry performance also remained lackluster
during 3Q15.
Segment EBIT margins contracted 80bp to 9.7% with 9.2% YoY EBIT decline
(base quarter reported 7.9% EBIT decline), primarily due to negative operating
leverage.
4
28 January 2015

Titan Company
World of Titan, Helios and Fastrack posted LTL sales growth at -3%, 4% and -6%
respectively.
Eyewear: Strengthening franchise
Others reported 14.7% increase in sales while EBIT came in at INR2m vs. loss of
INR 18m in base.
Eyewear reported 22% sales growth with Titan Eye+ growing by 22% driven by
9% LTL growth.
Con-call highlights
Jewelery
Despite removal of 80:20 import restrictions, customs authorities are not
allowing shipments for domestic consumption on credit as of now. No clarity on
when this will be allowed. As of now, all the imports which are coming in for
domestic consumption are being allowed only on cash. Company is awaiting
clarity from RBI on this.
However, it has been procuring gold on credit from other sources (SBI Gold
Deposit etc). Net procurement still remains predominantly on credit.
Net cash positive on balance sheet. Over the quarter debt has fallen sharply.
Lower tax rates: Jewellery products assembled and sold out of Pantnagar factory
were higher than budgeted. Hence tax rates have been recalibrated to 21-22%
vs. 25-26%. Two more years of tax break (100% break available). If studded
jewellery share increases, tax rate will go down.
Golden Harvest Scheme (GHS) was stopped in 2Q15. While it has been re-
started in November’15 line with amended laws, benefits will come only after 2-
3 quarters.
New GHS: 6 months and 10 months scheme. Imputed return is 12%/annum.
Jewellery volume growth of 25% including coins. Base quarter did not have
coins. Excluding coins, volume growth was 11%.
75% benefits of gold hedging will come in 4Q15 on gross margin. Only 25%
gains have been booked yet.
Tanishq sales declined 4% but this is despite absence of Golden Harvest Scheme
which contributed ~30% of sales. Stripping that off, underlying demand is good
in Jewellery. Customer growth of 8%.
Goldplus outperformed Tanishq after long time – 30% growth in sales. Expect
growth of 20%+ in this division.
Watch
Tough quarter – weak festive season - sales during Dussera/Diwali were lower
YoY. Additionally, e-commerce hyperactivity during festive season also
impacted. Titan also retails its Watches through e-commerce sites.
As per management, entire Watch category suffered in 3Q.
Seeing positive signs in 4Q.
28 January 2015
5

Titan Company
Valuation and view
We have revised our estimates marginally upwards to incorporate lower tax
rate. Healthy jewellery performance despite absence of GHS was key positive in
our view.
Improving macros and consumer sentiment should drive urban consumption
going ahead, in our view. Titan offers a good play on urban consumption revival,
we believe.
Maintain BUY with a target price of INR 470 (30x FY17EPS, 3 year average P/E).
Volatility in gold price is a key risk.
Exhibit 8: Revised estimates by 2-4% to bake in the lower tax rates
FY15E
124,573
11,706
9.7
New
Old
FY16E FY17E FY15E FY16E FY17E
148,029 178,892 126,005 148,601 176,532
14,674 18,395 12,121 14,992 18,248
12.3
15.4
9.9
12.1
14.9
Change (%)
FY15E FY16E FY17E
-1.1% -0.4%
1.3%
-3.4% -2.1%
0.8%
-1.3%
0.8%
3.7%
Source: Company, MOSL
Sales
EBITDA
EPS
Exhibit 9:
Titan
P/E (x)
45
30
15
8.0
0
PE (x)
Median(x)
Peak(x)
Min(x)
25.5
25.0
Avg(x)
40.2
34.5
Exhibit 10: Titan P/E premium vs. Sensex
180
120
60
0
-60
59.2
Titan Company PE Relative to Sensex PE (%)
LPA (%)
119.1
Source: Bloomberg, Company, MOSL
Source: Bloomberg, Company, MOSL
Exhibit 11: Valuation Matrix of coverage universe
Company
Consumer
Asian Paints
Britannia
Colgate
Dabur*
Emami*
Godrej Consumer
GSK Consumer
Hind. Unilever
ITC
Marico*
Nestle
Pidilite Inds.
Radico Khaitan
United Spirits
Retail
Jubilant Foodworks
Shopper's Stop
Titan Company
28 January 2015
Reco
Price Mkt Cap EPS Growth YoY (%)
P/E (x)
EV/EBITDA (x)
ROE (%) Div. (%)
(INR) (USD M) FY15E FY16E FY17E FY15E FY16E FY17E FY15E FY16E FY17E FY15E FY15E
890
1,913
1,927
249
934
1,074
5,701
942
360
353
7,344
578
88
3,485
1,423
487
400
13,896
3,720
4,264
7,108
3,450
5,946
3,902
33,149
45,775
3,701
11,523
4,821
190
8,243
1,515
651
5,784
20.3 20.0
21.8 20.3
14.4 24.4
16.1 16.1
11.4 17.9
19.8 31.3
-12.5 18.4
6.0
18.3
11.5 14.4
10.0 19.1
7.1
18.0
15.3 24.2
-12.0 20.6
LP
151.7
12.6
47.6
16.7
60.6
35.8
25.7
19.8
23.7
24.6
18.0
21.1
19.3
16.5
18.7
16.0
17.2
18.4
21.6
19.2
43.5
41.3
25.1
25.8
57.8
48.3
46.7
40.8
47.0
41.4
40.6
52.8
29.2
39.8
56.9
54.7
14.7
201.1
69.9
72.0
41.1
48.1
40.2
37.5
35.2
39.9
31.5
34.3
44.6
25.5
33.4
48.2
44.0
12.2
79.9
43.5
53.0
32.7
40.2
32.5
30.1
29.8
32.9
26.4
29.4
37.6
22.0
28.5
40.7
36.2
10.2
55.7
30.8
42.4
26.0
38.0
34.4
31.5
32.3
39.3
29.5
38.8
39.2
19.8
26.1
33.9
37.2
9.3
69.0
33.5
21.2
30.5
31.3
28.0
24.0
27.7
33.2
23.2
31.6
32.3
17.3
21.3
29.2
29.3
8.2
47.3
21.6
17.7
24.0
25.9
21.3
19.3
23.3
27.3
19.9
26.5
26.3
14.8
17.8
24.8
23.8
7.0
36.8
15.4
15.0
18.8
31.6
45.7
88.4
33.3
46.4
19.5
27.9
102.4
34.5
26.1
50.4
22.9
9.1
7.7
19.4
7.3
28.0
0.9
1.0
1.6
1.0
0.8
0.9
1.0
1.9
2.3
0.2
1.2
0.6
1.0
0.0
0.0
0.2
0.7
6
Neutral
Buy
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Buy
Neutral
Neutral
Buy
Buy
Buy
Neutral
Buy
Source: Company, MOSL

Titan Company
Story in Charts
Exhibit 12: Jewellery sales increased 8.3% in FY14
Jewellery Sales (INR in mn)
57.1%
36.2%
26.7%
14.9%
8.3%
43.3%
39.5%
15.4%
15.0%
14.0%
14.6%
13.6%
11.6%
Jewellery Sales gr (%)
Exhibit 13: Watches sales expanded 11.1% in FY14
Watches Sales (INR in mn)
Watches Sales gr (%)
11.1%
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Source: Company, MOSL
Source: Company, MOSL
Exhibit 14: Jewellery EBIT margins were up 50bps YoY in
FY14…
Jewellery
8.9%
10.1%
10.6%
Exhibit 15: …while watches EBIT margins declined 50bps YoY
Watches
15.4%
15.0%
14.0%
14.6%
13.6%
11.6%
5.4%
5.8%
6.9%
8.3%
11.1%
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Source: Company, MOSL
Source: Company, MOSL
Exhibit 16: PAT growth of 25.7% over FY15-17E
PAT (INR mn)
40.5
25.7
20.1
16.7
2.1
2012
2013
2014
2015E
2016E
2017E
25.8
PAT growth (%)
Exhibit 17: Return Ratios (x):
RoE (%)
66.9
59.4
37.2
48.9
42.5
29.4
28.0
2015E
28.2
2016E
28.5
2017E
34.9
35.8
38.9
RoCE (%)
2012
2013
2014
Source: Company, MOSL
Source: Company, MOSL
28 January 2015
7

Titan Company
Corporate profile: Titan Company
Company description
Titan Industries (TTAN) is one of India's largest
specialty retailers. It is the market leader in
Watches and a pioneer in Branded Jewelry. The
company's economy segment watch, Sonata is the
largest selling watch in the country. TTAN entered
the branded jewelry segment in 1996 with the
brand and remains the largest player in this
segment.
Exhibit 18: Sensex rebased
Exhibit 18: Shareholding pattern (%)
Dec-14
Promoter
DII
FII
Others
53.1
2.9
21.6
22.5
Sep-14
53.1
3.1
21.5
22.4
Dec-13
53.1
2.0
21.6
23.4
Exhibit 19: Top holders
Holder Name
Jhunjhunwala Rakesh Radheshyam
Matthews Pacific Tiger Fund
Dendana Investments Mauritius Ltd
Jhunjhunwala Rekha Rakesh
National Westminster Bank PLC as Depositary of First
% Holding
6.9
3.1
2.2
2.0
1.7
Note: FII Includes depository receipts
Exhibit 20: Top management
Name
C V Sankar
Bhaskar Bhat
Chairman
Managing Director
Designation
Exhibit 21: Directors
Name
C V Sankar
C G Krishnadas Nair*
Bhaskar Bhat
T K Arun
T K Balaji*
*Independent
Name
Vinita Bali*
Ireena Vittal*
Das Narayan Das*
Hema Ravichandar*
Exhibit 22: Auditors
Name
Delloite Haskins & Sells
T P P & Associates
Type
Statutory
Cost Auditor
Exhibit 23: MOSL forecast v/s consensus
EPS (INR)
FY15
FY16
FY17
MOSL forecast
9.7
12.3
15.4
Consensus
forecast
9.9
12.3
15.1
Variation (%)
-2.1
-0.1
2.3
28 January 2015
8

Titan Company
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
Total Expenditure
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income - Recurring
Profit before Taxes
Change (%)
Margin (%)
Tax
Deferred Tax
Tax Rate (%)
Profit after Taxes
Change (%)
Margin (%)
Extraordinary income
Reported PAT
2010
46,744
22.9
42,929
3,816
17.2
8.2
360
254
119
3,320
24.7
7.1
838
134
21.2
2,615
24.7
5.6
-112
2,503
2011
65,209
39.5
59,352
5,857
53.5
9.0
345
82
561
5,991
80.5
9.2
1,718
32
28.1
4,305
64.6
6.6
-32
4,273
FY12
2012
88,384
35.5
80,054
8,329
42.2
9.4
449
437
941
8,385
40.0
9.5
2,389
53
27.9
6,048
40.5
6.8
-47
6,002
FY13
2013
101,127
14.4
91,011
10,116
21.4
10.0
545
506
1,008
10,072
20.1
10.0
2,854
43
27.9
7,262
20.1
7.2
0
7,262
FY14
2014
109,158
7.9
98,673
10,484
3.6
9.6
656
871
1,202
10,159
0.9
9.3
2,761
13
27.0
7,411
2.1
6.8
0
7,411
2015E
124,573
14.1
112,867
11,706
11.7
9.4
917
869
1,464
11,384
12.1
9.1
2,678
55
24.0
8,652
16.7
6.9
0
8,652
(INR Million)
2016E
148,029
18.8
133,355
14,674
25.4
9.9
1,061
1,085
1,782
14,310
25.7
9.7
3,366
69
24.0
10,875
25.7
7.3
0
10,875
2017E
178,892
20.8
160,498
18,395
25.4
10.3
1,287
1,173
2,066
18,000
25.8
10.1
4,234
86
24.0
13,680
25.8
7.6
0
13,680
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deferred Tax
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Intangibles
Capital WIP
Investments
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Current Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOSL Estimates
2010
444
6,800
7,244
728
48
8,019
5,611
3,145
2,466
160
123
76
18,037
13,403
936
1,867
1,831
12,843
11,496
1,347
5,194
8,019
2011
444
9,810
10,254
677
15
10,946
6,089
3,393
2,696
135
194
91
33,800
19,938
1,137
10,965
1,760
25,969
24,184
1,786
7,830
10,946
2012
888
13,611
14,499
59
-38
14,520
7,271
3,693
3,578
110
249
160
42,802
28,787
1,631
9,605
2,779
32,378
29,435
2,942
10,424
14,520
2013
888
18,761
19,649
60
-80
19,629
8,480
4,078
4,402
84
417
185
53,579
36,779
1,638
11,365
3,797
39,039
35,478
3,561
14,541
19,629
2014
888
24,352
25,240
8,063
-93
33,209
10,399
4,495
5,903
59
329
266
54,420
38,672
1,520
8,889
5,338
27,768
23,938
3,830
26,652
33,209
2015E
888
30,008
30,896
9,599
-148
40,347
11,974
5,413
6,561
59
329
266
57,618
44,036
2,060
7,126
4,396
24,485
19,783
4,702
33,133
40,347
(INR Million)
2016E
888
37,621
38,509
10,599
-217
48,891
14,549
6,474
8,075
59
329
266
70,044
49,684
2,447
12,933
4,980
29,902
24,119
5,784
40,141
48,870
2017E
888
47,197
48,085
8,099
-303
55,881
17,624
7,761
9,863
59
329
266
82,749
56,650
2,956
17,486
5,658
37,459
30,320
7,139
45,290
55,807
28 January 2015
9

Titan Company
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
Operating RoE
RoCE
Working Capital Ratios
Debtor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2010
2.9
3.3
8.2
0.9
31.0
2011
4.8
5.2
11.5
1.5
30.2
2012
6.8
7.3
16.3
2.0
30.1
2013
8.2
8.8
22.1
2.5
30.0
-827
2,473
-2,334
2014
8.3
9.1
28.4
2.4
28.6
2015E
9.7
10.8
34.8
2.9
30.0
2016E
12.3
13.4
43.4
3.7
30.0
2017E
15.4
16.9
54.2
4.6
30.0
58.8
55.1
3.9
41.5
24.5
0.5
48.9
45.5
3.4
34.0
18.1
0.6
48.0
44.1
3.2
33.8
14.1
0.6
41.1
37.1
2.9
30.5
11.5
0.7
32.7
29.8
2.4
24.0
9.2
0.9
26.0
23.7
1.9
18.8
7.4
1.2
41.0
44.2
53.6
49.2
47.8
61.8
48.9
43.2
66.9
42.5
38.4
59.4
29.4
29.3
37.2
28.0
27.2
34.9
28.2
0.0
35.8
28.5
0.0
38.9
7
5.8
6
6.0
7
6.1
6
5.2
5
3.3
6
3.1
6
3.0
6
3.2
0.1
0.1
0.0
0.0
0.3
0.3
0.3
0.2
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Int./Div. Received
Deferred Revenue Exp.
Depreciation & Amort.
Interest Paid
Direct Taxes Paid
Incr in WC
CF from Operations
Extraordinary Income
Incr in FA
Investments
CF from Invest.
Issue of Shares
Incr in Debt
Dividend Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
28 January 2015
2010
3,320
-119
0
360
254
838
-558
3,535
-112
-63
0
-49
0
-1,026
519
621
-2,166
1,320
547
1,867
2011
5,991
-561
0
345
82
1,718
-6,461
10,600
-32
524
15
-571
0
-51
776
104
-931
9,098
1,867
10,965
2012
8,385
-941
0
449
437
2,389
3,953
1,987
-47
1,212
69
-1,328
444
-618
1,290
556
-2,020
-1,360
10,965
9,605
2013
10,072
-1,008
0
545
506
2,854
2,357
4,906
0
1,352
25
-1,376
0
1
1,806
-35
-1,769
1,760
9,605
11,366
2014
10,159
-1,202
0
656
871
2,761
14,588
-6,864
0
1,806
81
-1,887
0
8,002
2,181
-453
6,274
-2,476
11,365
8,889
2015E
11,384
-1,464
0
917
869
2,678
8,244
784
0
1,575
0
-1,575
0
1,536
2,116
393
-973
-1,764
8,889
7,125
(INR Million)
2016E
14,310
-1,782
0
1,061
1,085
3,366
1,202
10,106
0
2,575
0
-2,575
0
1,000
2,596
129
-1,725
5,807
7,126
12,932
2017E
18,000
-2,066
0
1,287
1,173
4,234
595
13,566
0
3,075
0
-3,075
0
-2,500
3,263
175
-5,938
4,553
12,933
17,485
10

Titan Company
NOTES
28 January 2015
11

Titan
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