Titan Ltd, India’s leading jeweller and watchmaker reported a 5 percent decline in net profit to Rs 715 crore ($85 million) for the April-June quarter, as against Rs 756 crore in the year-ago period.
Despite the marginal decline in profit, the company’s sales rose by 13 percent to Rs 12,223 crore, as against Rs 10,851 crore in the corresponding quarter of the previous fiscal year.
Titan’s jewellery business revenue stood at Rs 11,808 crore while the watches and eyewear segments reported revenue of Rs 1,023 crore and Rs 210 crore respectively. Revenue from other segments, including fragrances and Taneira was Rs 277 crore.
Commenting on the Q1 results, CK Venkataraman, CEO at Titan Ltd in a statement said, “In the recently presented Union Budget, the custom duty on gold imports in the country has been reduced from 15% to 6%. This development has long term positive implications for the Jewellery industry. While this change is likely to entail a short-term impact in the form of value loss on duty paid gold inventory (expected to be expensed over the next two quarters), we remain optimistic on the longer-term benefits as it makes the market equitable for large businesses like ours.”
“Our first quarter performance reflects mixed consumer trends in lifestyle categories. While the inclement weather conditions during the summers, general elections and lower wedding days impacted retail walk-ins, the growth metrics in watches & wearables and eye care were quite healthy,” he added.
During the quarter, Titan opened one international store in Muscat, Oman and in India Titan opened 11 new Tanishq stores, 19 Mia store, and three Zoya stores.
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