Titan Company reports 14.7 percent decline in Q1 profit

Leading watch maker Titan has reported net profit of Rs151 crores for the first quarter of 2015/16, a 14.7 percent decline from Rs 177 crores in same period, year ago. In a regulatory filing to the Bombay Stock Exchange, the company said its total income for the first under review also declined 6.6 percent to Rs 2,724 crores from Rs 2,917 crores in the same period year ago.

“Sales income dropped largely on account of weak consumer sentiment and absence of golden harvest scheme in jewellery this year,” the company said in a statement. Net sales were up 8.4 percent from Rs 2,512 crores reported in the last quarter of last fiscal.

“Our watches business, however, recorded 9 percent growth to Rs 485 crores from Rs 444 crores year ago though sequentially declining 5 percent from Rs 511 crores,” the statement said.

Jewellery business dropped 11 percent to Rs 2,072 crores in Q1 from Rs 2,325 crores year ago though up 13 percent sequentially from Rs 1,828 crores last quarter. The months of May and June were poor months for the company, while rural demand was affected due to lower realisations and monsoon conditions.