Titan Company Ltd announced a growth of 3.6% in net profit in a challenging quarter. The income from operations in the second quarter, July to September 2013, was Rs.2290.02 crore, a growth of 1.4% over last year's income of Rs.2258.29 crore during the same period. The income for April to September 2013, the first half of this financial year, stands at Rs.5377.81 crore, registering a healthy growth of 21.3% over last year.
The net profit for Q2 is Rs.186.65 crore, up from Rs.180.17 crore last year - a growth of 3.7%. The net profit for the six months ended September 2013 is Rs.369.13 crore, up 9.8% over last year. The profit before tax is Rs.257.26 crore for Q2 and Rs.508.79 crore for the first half. The Watch and Eyewear businesses of the company, with a decent import content, continued to be affected by input cost increases and adverse currency movements. Despite the import cost challenge, the margins were well managed.
The income for watches was Rs.442.36 crore in Q2 as compared to Rs.471.79 crore last year. On the other hand, jewellery business recorded an income growth of 4.3% in Q2 over last year. It had an income of Rs.1798.07 crore this year in Q2 as compared to Rs.1723.93 crore last year. Other businesses of the Company comprising Precision Engineering, a B2B business, the Eyewear business and accessories grew by 17.2% in Q2. The combined income of these businesses was Rs.114.07 crore in Q2. Their last year income for Q2 was Rs.97.37 crore.
The Titan Company retail chain is 1002 stores strong, as on 30th September 2013 with a retail area crossing 13.6 lac sq.ft. nationally for all its brands.
Mr. Bhaskar Bhat, Managing Director of the Company stated that "This was a challenging quarter on account of weak consumer sentiments, particularly for discretionary purchase categories like Watches and Jewellery. The continued inflation and the weak rupee are affecting demand as well as costs and interest rates that continue to be at high levels. Regulatory issues on gold created a high demand supply gap in the market. The first half numbers for Titan Company look healthy on the back of a good first quarter. Given the good monsoon across the country and a likely change in consumer sentiment driven by stock market movement, we are hopeful of a good second half."
S. Ravi Kant
Executive Vice President (Corporate Communications)
Titan Company Limited specializes in the design, manufacture and marketing of watches, jewellery, eyewear and fashion accessories. Net sales break down by product family as follows:
- jewellery items (88.5%): gold jewellery decorated with diamonds and precious stones, pure gold and platinum jewellery (Tanishq, Zoya, Mia, Carat Lane and Gold Plus brands);
- watches (7.3%): sold under own brands (Titan, Fastrack, Sonata, Favre Leuba, Xylys and Nebula), and under license brands (Tommy Hilfiger, Police, FCUK, Annie Klein, Kenneth Cole and Esprit);
- eyewear (1.7%): eyeglasses, sunglasses, frames, lenses and contact lenses (Titan Eye Plus, Titan, Fastrack and Glares brands).
The balance of net sales (2.5%) concerns the distribution activities of perfumes (Skinn by Titan brand), saris (Taneira Sarees brand) and fashion accessories, as well as the manufacture of precision engineering products and industrial machinery.
Products are marketed through a network of 1,909 exclusive stores located in India, over 7,000 multi-brand outlets and via the Internet.
At the end of March 2021, the group had 11 production sites in India.
India accounts for 99.5% of net sales.
TITAN COMPANY LIMITED 
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