Titan recorded a net profit of Rs 186.65 crore in Q2, up from Rs180.17 crore last year – a growth of 3.7 percent. Net profit for the six months ended September 2013 stood at Rs 369.13 crore, up 9.8 percent over last year. Its profit before tax was Rs 257.26 crore for the second quarter and Rs 508.79 crore for the first half. The company announced a growth of 3.6 percent in net profit in the second quarter.
The income from operations in the second quarter, July to September 2013, was Rs 2,290.02 crore, a growth of 1.4 percent over last year’s income of Rs 2,258.29 crore during the same period while income for April to September 2013, the first half of the financial year, stood at Rs 5,377.81 crore, registering a growth of 21.3 percent over last year.
Commenting on the results: Bhaskar Bhat, Managing Director of the Company, said: “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 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.”
Titan’s Watch and Eyewear businesses continued to be affected by input cost increases and adverse currency movements. The income for watches was Rs 442.36 crore in Q2 as compared to Rs 471.79 crore last year. Jewellery business recorded an income growth of 4.3 percent in Q2 over last year.The company earned an income of Rs 1,798.07 crore this year in Q2 as compared to Rs 1,723.93 crore last year. Other businesses of the company comprising Precision Engineering, a B2B business, the Eyewear business and accessories grew by 17.2 percent in Q2, the combined income of the businesses was Rs 114.07 crore in Q2 as compared to the last year’s income of Rs 97.37 crore.
As of September 2013, Titan’s retail chain has 1002 stores with a retail area crossing 13.6 lac sq.ft. nationally for all its brands.