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Titan's 2Q Sales +10%, Profit +21%
Oct 31, 2012 10:34 AM
By Dilipp S Nag
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RAPAPORT... Titan Industries, which owns the Tanishq brand, reported that net sales rose 10 percent year on year to $416.8 million (INR 22.58 billion) in the second fiscal quarter that ended on September 30, with growth was observed across all businesses. Net profit increased 21 percent to $33.2 million (INR 1.80 billion).
''The second-quarter retail sales growth in all our formats indicates a change in consumer sentiment with a willingness to spend on attractive offers and new products,'' said Bhaskar Bhat, Titan’s managing director. ''Demand had to be stimulated through investment in advertising. The expectation, therefore, for the festive season, is positive even though sales may come at a cost.''
The company reported that jewelry sales, including those from its flagship Tanishq brand, rose 6 percent year on year to $318.2 million (INR 17.24 billion). Sales at its other businesses, which include eyewear, precision engineering and accessories, grew 49 percent to $18 million (INR 973.7 million). Watch sales increased 13 percent to $87.1 million (INR 4.72 billion) during the quarter.
Titan stated, however, that the watch and eyewear businesses continued to be affected by input cost increases and adverse currency movements leading to a challenge on managing desired margins. Total expenses increased by 7 percent to $376.4 million (INR 20.40 billion) during the period.
Titan ended the second quarter with a network of 879 stores across its watch, jewelry and eyewear product divisions. Bhat stated that the company will introduce several new products and open many stores in the third quarter.
*Note: All data was published in rupee. Any references to U.S. dollar amounts were made according to exchange-rate conversions by Rapaport News.
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Tags:
Bhaskar Bhat, Dilipp S Nag, Festival, India, Jewelry, Tanishq, Titan, Titan Industries, watch
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