Titan Q4 profit dips 14% to Rs 184 cr on weak business, regulatory curbs

Firm buys majority stake in Tiger Global-funded online jewellery mart, Carat Lane, for undisclosed sum

India's largest jewellery and watchmaker, Titan, said its fourth quarter profit dipped 14.40 per cent to Rs 184.1 crore, while sales dropped marginally by 1.6 per cent to Rs 2,456 crore, due to weak business sentiment and regulatory restrictions on jewellery business.

"The strength of Company's brands was tested in an environment of subdued sales across all retail formats of the company as well as related categories. Weak consumer sentiment had an impact on retail sales across all businesses," Titan said in a statement.

Titan had reported a profit of Rs 215 crore on revenue of Rs 2,496 crore in the corresponding quarter a year ago.

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Titan said it has acquired a majority stake in Carat Lane Trading Pvt Ltd, an online jewellery and gems trader with physical stores, for an undisclosed sum. The transaction is expected to be completed by June. US hedge fund Tiger Global had led a $31 million investment in Chennai-based Carat Lane in June 2015.

"The year 2015-16 is behind us now. We are looking at opportunities of profitable growth while making investments behind our brands. The company will be exploring new avenues for technology induction in products and retail in addition to enhancing the 'digital' skills and capabilities of the organisation. The premium space too has done well for our brands and investments will be made in creation of highly differentiated products for the discerning consumer," Bhaskar Bhat, Managing Director of Titan said in the statement.

Titan stock closed Rs 4.70 or 1.31 per cent higher at Rs 364.10 on Friday on the Bombay Stock Exchange.