Titan Ltd Q2 net profit declines 23 percent to Rs 704 crore

Titan Ltd, a leading jewellery and watch maker from the Tata Group reported a 23 percent decline in net profit to Rs 704 crore ($83.8 million) for the third quarter ended September 30, as against Rs 916 crore in the year-ago quarter.

The company’s revenue for the quarter rose by 26 percent to Rs13,660 crore, as against Rs 10,837 crore in the corresponding quarter of the previous fiscal year.

The jewellery division contributed Rs 10,763 crore to the overall revenue followed by watches & wearables business with revenue of Rs 1,301 crore.

The revenue from the eye care segment stood at Rs 201 crore while the emerging businesses comprising of Taneira recorded revenue of Rs 106 crore.

Commenting on the results, CK Venkataraman, managing director of Titan Ltd in a statement said, “After a muted Q1, Q2 witnessed encouraging growth across key businesses. Jewellery clocked healthy double-digit growth for the quarter. The buyer growth metrics were fairly strong and in good double-digits across gold and studded product categories.”

“On account of the customs duty related losses, as well as the need to invest in growth of various businesses, the profitability of Q2 was quite depressed. However, we are quite confident about the competitiveness of each of our businesses and we remain optimistic about our performance for rest of the financial year,” he added.

During the quarter, Titan added 11 new Tanishq stores, 12 Mia stores and 1 Zoya store.