Results Lend Glitter To Titan Stock

Shares of Titan Industries glittered on the Bombay Stock Exchange today, rising by over 12 per cent to Rs 38.20. This was largely due to the company's improved quarterly performance for the period ended December 2001. Around 87,122 shares of the watch and jewellery major were traded on the BSE.

On Thursday, the company came out with its results for the third quarter ended December 31, 2001. It reported a 195 per cent rise in net profit to Rs 6.99 crore (Rs 2.37 crore). Net sales rose 30.5 per cent to Rs 192.79 crore (Rs 147.70 crore).

In the last 35 sessions, Titan Industries lost 22.5 per cent -- from Rs 44 on December 11, 2001 to Rs 34.10 on January 31, 2002. Volumes declined to 10,746 shares from 1.04 lakh in the period.

According to analysts, the company has not only captured the higher-end customer segment but also the lower-end market (earlier dominated by the unorganised sector) by introducing the Sonata range of watches. The innovation and diversification drive in the Tanishq range, Titan's premium segment jewellery range, has also helped the company.

Incorporated in 1984, the Rs 700-crore Titan Industries (formerly Titan Watches) is a joint venture between the Tata group and TamilNadu Industrial Development Corporation. Titan is a leading manufacturer of watches, marketed under the Titan and Sonata brand names.

Titan makes and markets over 7 million watches every year in over 40 countries. It controls about 50 per cent of the organised sector, and claims to be the sixth largest brand manufacturer in the world.

Titan entered the precious jewellery premium segment under the Tanishq brand in 1994 , which is sold through 40 outlets and exported to the US, Europe and the Middle East. Further, diversification into leather accessories, sunglasses and writing instruments under the Titan brand name is on the cards (in 2002).