Titan Company shares fall 7 per cent post Q2 earnings

Shares of Titan Company, the Tata group firm, fell as much as seven per cent on Friday in morning trade even as the company reported over 28 per cent jump in its net profit for the second quarter ended September 30, 2014.

Marketmen attributed the fall in the counter to the earnings during the period being largely driven by jewellery business of the company due to redemption of Golden Harvest accounts of existing customers, which had to be closed due to regulatory changes.

Titan Company on Thursday reported a 28.57 per cent jump in net profit at Rs 239.98 crore for Q2 of the current 2014-15 fiscal on account of sharp increase in jewellery sales.

Reacting to the numbers, shares of the company opened on a weak note and then lost further ground to touch an intra-day low of Rs 391, registering a fall of 6.91 per cent over its previous closing price.

Similarly, on the National Stock Exchange the stocks of the Tata Group firm, after opening at Rs 409.90, fell 6.87 per cent to reach an early low of Rs 390.55.

Titan's net sales stood at Rs 3,564.67 crore during Q2 for FY15, up 55.66 per cent as against Rs 2,290.02 crore in the year-ago period, Titan said in filing to the Bombay Stock Exchange (BSE).

"This was an extraordinary quarter for the company and we witnessed an income growth of 55 per cent on account of an encouraging performance by all divisions, especially the jewellery business where the accounts of our Golden Harvest Scheme customers had to be closed based on regulatory changes," Titan Company Managing Director Bhaskar Bhat said.

Meanwhile, the benchmark BSE index Sensex was trading at 27739.35 points, up 393.02 points at 12:13 pm.