Titan Company declines after reporting weak Q1 results

Titan Company declined 5.05% to Rs 322.50 at 15:00 IST on BSE after net profit dropped 14.78% to Rs 151.06 crore on 6.6% drop in total income to Rs 2724.13 crore in Q1 June 2015 over Q1 June 2014.

The result was announced during market hours today, 31 July 2015.

Meanwhile, the S&P BSE Sensex was up 434.04 points or 1.57% at 28,139.39.

On BSE, so far 3.12 lakh shares were traded in the counter as against average daily volume of 77,917 shares in the past one quarter.

The stock hit a low of Rs 320.80 so far during the day, which was also a 52-week low for the stock. The stock hit a high of Rs 342.50 in intraday trade. The stock had hit a record high of Rs 448 on 3 February 2015.

Titan Company said sales dropped in Q1 June 2015 largely on account of an extremely weak consumer sentiment and absence of the Golden Harvest scheme in jewellery this year. The company's profit before tax (PBT) dropped 15.3% to Rs 203.61 crore in Q1 June 2015 over Q1 June 2014.

The company has put together plans to stimulate demand for all of its product categories through innovative advertising campaigns and new product launches in the coming quarters.

The income of watches business rose 9.1% to Rs 484.54 crore in Q1 June 2015 over Q1 June 2014. The jewellery business income witnessed a decline of 10.9% to Rs 2072.03 crore in Q1 June 2015 over Q1 June 2014. The jewellery business continues to face regulatory pressures that have an adverse impact on sales. Eyewear business grew 19.7% to Rs 106.77 crore in Q1 June 2015 over Q1 June 2014.

Titan Company is into eyewear, watches and jewellery making business.

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