Titan Q2 net profit rises 28.57 per cent to Rs 239.98 crore

Tata group firm Titan Company on Thursday reported 28.57 per cent jump in net profit at Rs 239.98 crore for the second quarter ended September 30, 2014 on the account of sharp increase in jewellery sales.

The company had reported net profit of Rs 186.65 crore in the corresponding quarter a year ago.

Titan's net sales were at Rs 3,564.67 crore during Q2, 2014-15, up 55.66 per cent as against Rs 2,290.02 crore in the year-ago period, Titan said in Bombay Stock Exchange (BSE) filing.

Commenting on the results, Titan Company Managing Director Bhaskar Bhat said: "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."

He further said: "We have also seen an improvement in consumer sentiments in the second quarter. All our brands will invest in new campaigns in this quarter to improve our connect with the consumer."

During the quarter, revenue jewellery business by whopping 64.8 per cent to Rs 2,929.38 crore while watches business grew by 20.13 per cent to Rs 527.46 crore.

Revenue from other businesses comprising of eye wear , accessories and precision engineering businesses increased by 20.93 per cent to Rs 137.9 crore.

For the half year period ended September 30, the company posted a net profit of Rs 417.25 crore as against net profit of Rs 369.13 crore in the corresponding period last year.

Net sales of the company for the half year period ended September 30, rose to Rs 6,418.33 crore as compared with Rs 5,377.81 crore in same period in the previous fiscal.

Shares of Titan Company closed at Rs 420.05 a piece on Thursday, up 2.18 per cent from their previous close on the BSE.