On the backdrop of global downturn and spiraling gold prices Titan Industries, the Bangalore-based watch and jewellery division of Tata Group, has reported 11.6 per cent drop in its net profit at Rs 77.6 crore for the second quarter ended September 30, 2009 compared to the corresponding quarter last year.
Its sales income for the quarter went up marginally by 4.7 per cent to Rs 1,156.4 crore compared to the year ago period.
The company’s watch sales showed a marginal decline of 2.6 per cent during the second quarter with its income at Rs 295.5 crore compared to Rs 303.4 crore during the same period last year. Jewellery income grew by 9.4 per cent to Rs 822.6 crore during the quarter. The company’s other businesses declined by 9.1 per cent to Rs 31.03 crore compared to the year ago period.
“While high price of gold had an impact on customer walk-ins our jewellery stores, there has been a significant improvement in sales during Dussehra and Diwali. The customers seem to have accepted the present price of gold and are returning to spending on jewellery. Cancellation and postponement of orders by international customers have resulted in decline in sales in the precision engineering division,” the company said in a statement. Titan’s net profit for the first half of the current year was almost flat at Rs 161.09 crore compared to Rs 158.5 crore in the same period last fiscal. Total sales are up by 6.3 per cent to Rs 2,045 crore during the first half of the year compared to the year ago period.
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