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Titan Industries 1Q Sales +42%
Aug 1, 2013 7:01 AM
By Deena Taylor
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RAPAPORT... Titan Industries, owners of the Tanishq jewelry brand in India, reported that sales rose 42 percent year on year to $509.5 million (INR 30.87 billion) in what the company called a challenging first quarter that ended on June 30, 2013. Profit after taxes grew 17 percent to $30.2 million (INR 1.82 billion), while the company's expenses jumped by 43 percent to $474.8 million (INR 28.77 billion).
Jewelry sales, which include sales from the company's three major jewelry brands Tanishq, GoldPlus and Zoya, rose 47 percent to $431.3 million (INR 26.14 billion) during the quarter, while the company's watch sales grew 11 percent to $66.3 million (INR 4.02 billion).
Titan's managing director, Bhaksar Bhat, noted that the first quarter saw encouraging topline growth, largely driven by the sale of plain gold jewelry and coins on account of the drop in gold prices. He also said that a change in product mix impacted margins at the company's watch and jewelry businesses.
"Consumer sentiment continues to be weak and discretionary spending was subdued. The pressure of high inflation due to the weak rupee as well as rising import costs are a matter of concern. For the coming quarter, we are working on plans to deal with the weak consumer sentiment as well as the impact of recent regulatory measures introduced in the financing of gold imports," he said.
During the quarter the company added 15 retail outlets across all its divisions. The company's retail chain includes 968 stores countrywide with plans to expand its watches, jewelry and eyewear divisions.
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Tags:
Deena Taylor, gold, Jewelry, Tanishq, Titan Industries, watches
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