The watch and jewellery maker saw its revenues boosted by lower price of gold which spurred demand for its jewellery while the lower discretionary spend impacted its timepiece business
Titan Industries reported 16.9% higher net profit to Rs182.48 crore, for the April-June period, driven by higher jewellery sales due to fall in price of gold. The company’s total revenues, including sales, grew 42% to Rs3,087.8 crore from Rs2,230.8 crore a year ago period.
Bhaskar Bhat, managing director, Titan Industries said, “Margins in both watch and jewellery businesses were impacted due to change in product mix. Consumer sentiment continues to be weak and discretionary spend was subdued. The pressures of high inflation due to a weak rupee as well as rising import costs are a matter of concern. For the coming quarter, we are working on our plans to deal with the weak consumer sentiment as well as the impact of recent regulatory measures introduced in the financing of gold imports.”
During the June quarter, the Tata group company’s revenues from jewellery business increased 47.2% to Rs2,614.16 crore fuelled by drop in gold prices in April and a good wedding season during the first quarter. The watches business grew 11.4% to Rs401.65 crore, impacted by lower discretionary spend. Eyewear, precision engineering and accessories grew by 37.5% to Rs123.21 crore.
Retail expansion continued with a net addition of 15 stores across all its businesses in the June quarter, with retail area of over 1.3 million square feet. The company’s retail chain is 968 stores strong as on 30 June 2013.
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