Titan Q1 PAT down 16% at Rs 126 crore

Tata group firm Titan Co Ltd on Wednesday reported 16.34% decline in profit after tax at Rs 126.69 crore for the first quarter ended June 30, 2016-17, on account of VRS cost.

It had posted PAT of Rs 151.45 crore in the April-June period of the last financial year, Titan Co said in a BSE filing.

Net sales during the quarter under review stood at Rs 2,782.5 crore as against Rs 2,586.76 crore in the year-ago period, up 7.56%.

Jewellery division had a revenue of Rs 2,138.32 crore as against Rs 2,072.91 crore in the year-ago quarter. Watches vertical posted revenue of Rs 491.72 crore during the period as compared with Rs 485.17 crore.

Eyewear division clocked revenue of Rs 109.87 crore as against Rs 106.93 crore in the same period, the company said.

Titan Co Managing Director Bhaskar Bhat said: "The first quarter this year has been good for the company from a bottomline perspective, the final number though has been impacted adversely by an exceptional item, the benefits of which will accrue over the coming years."

The company had an exceptional item of Rs 96.88 crore on account of voluntary retirement scheme offered to its employees.

He further said: "Growth has been muted and our jewellery business has grown despite a reported drop of 50% in gold imports during the first half this calendar year.