How Jhunjhunwala Grilled The Top Brass Of His Favourite Bet Titan

Rakesh Jhunjhunwala Tips & Portfolio

Ace capitalist Rakesh Jhunjhunwala recently grilled the highest management of Titan NSE 0.57 is corporate at a call following its March quarter earnings.

The Tata Group firm reported 70.86% jump in consolidated benefit at Rs 304.41 crore for the quarter concluded March 31 against Rs 178.16 crore announce for an equivalent quarter of 2016-17.

Jhunjhunwalas additive holdings in Titan within the name of Jhunjhunwala Rakesh Radheyshyam, Rakesh Jhunjhunwala and Jhunjhunwala Rekha Rakesh stood at 8.46% as of March 31, 2018.

At a conference call post Q4, Jhunjhunwala wanted clarity on bonus and gratuity that Titan provides to its staff.

Is the bonus that you provide one-time? The gratuity to employees is one-time, I understand. Where is the dividend in respective businesses? he asked.

The management representatives replied that the bonus is finished one-time and it depends on work and it's practice, not a policy.

It is not part of the CTC. When we perform way above our own internal plans, this is something which is shared with the employees. From that perspective, it is a one-time for the quarter. It does not get amortised over the years. It is given at the end of the year, the Titan top brass clarified.

During the quarter, the company created provisions for impairment for a Rs 75 crore investments it had created in Favre Leuba. It absolutely was triggered by slower-than-expected takeoff.

Jhunjhunwala any asked what quantity the corporate proposes to write down off within the coming back quarters.

We do not expect to write off any further, but we have just been conservative in our accounting, said Bhaskar Bhat, Managing Director. He said the company would still invest for 5 years.

Jhunjhunwala was also keen to see the companys investment, write off and business plans.

On investment plans, Bhat said the magnitude was of Rs 200 crore. When we see the business model working, only then shall we take a decision to make larger investments, Bhat said.

Out of the planned investment, the company has already spend Rs 145 crore. It will spend another Rs 55 crore and then take a decision whether to invest further or not.

Titan saw a visit margin within the watch business to 8% in Q4FY18 from 15.50% in Q3FY18. the corporate processed to Jhunjhunwala that this was owing to exceptional issue owing to a stockists.

We took back stocks from RS, because we are consolidating them into other RS. We did not sell to them and, therefore, there was a drop in sales, CFO S Subramaniam said.

On a year-to-date basis, share worth of Titan has rallied 9% to Rs 931 as to May 16 from Rs 853.60 on January 1.

 

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