Moneycontrol Bureau
Titan Company's July-September quarter missed street estimates with net profit slipping 39.1 percent to Rs 145.39 crore from Rs 239.98 crore in year-ago period. During the period, its total income also fell 25.5 percent to Rs 2654 crore compared to Rs 3564 crore in corresponding quarter last fiscal.
The company says that the sharp drop is largely due to premature redemption of the Golden Harvest Scheme as the scheme contributed 54 percent of the revenue in Q2FY15. Declining 32 percent, its jewellery business fetched Rs 1981 crore in Q2 compared to Rs 2929 year-on-year.
According to a CNBC-TV18 poll, its July-September quarter net profit was expected to slip 22.9 percent at Rs 185 crore on a net revenue drop of 20.3 percent at Rs 2863 crore.
Bhaskar Bhatt, MD of the company says Q2 was an extremely challenging quarter for the company. "The industry saw a tough period with gold imports declining significantly. All our brands are working on new product and marketing campaigns for the festive season," he says.
Backed by activations by Titan and Fastrack, watches business grew 4.4 percent to Rs 546 crore in Q4 from Rs 523 crore (Y-o-Y). Eyewear business grew by 15.3 percent with an income of Rs 88 crore.
Other businesses comprising precision engineering, a B2B business and accessories declined by 10 percent in Q2.
As on September 30, the comany has 1246 stores.Posted by Nasrin Sultana
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