Titan second quarter net profit drops 39.41 percent

Tata Group firm Titan Company reported 39.41 percent decline in net profit at Rs 145.39 crores for the second quarter ended September 30, 2015 affected by sharp drop in income from jewellery business. The company had posted a net profit of Rs 239.98 crores in the same quarter last fiscal, the company said in a BSE filing.

Net sales during the period under review stood at Rs 2,654.68 crores as against Rs 3,564.67 crores in the same period last fiscal, it added. “The retail sentiment has been extremely poor in this quarter,” the company said. The firm's jewellery business recorded an income of Rs 1,981 crores during the quarter as compared to Rs 2,929 crores in the same period last fiscal. “The sharp drop is largely due to the premature redemption of Golden Harvest scheme that the company had to do in the previous year in view of the changes in the Companies Act, 2013 that brought such schemes under the ambit of public deposits,” it said.

Even in the first quarter, jewellery business dropped 11 percent to Rs 2,072 crores from Rs 2,325 crores year ago. The months of May and June were poor months for the company, while rural demand was affected due to lower realisations and monsoon conditions.