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Titan Company 2Q Sales Slump 26%
Nov 1, 2015 9:33 AM
By Rapaport News
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RAPAPORT... Titan Company reported that sales fell 26 percent
year on year to $405.8 million (INR. 26.55 billion) in the second quarter that
ended September 30 on the back of significant declines at its jewelry business.
Net profit plummeted 39 percent to $22.2 million (INR 1.45 billion).
Watch sales increased 4.4 percent to $83.5
million (INR 5.46 billion), while jewelry sales plunged 32 percent to $302.9
million (INR 19.81 billion) during an “extremely challenging” quarter, according
to Bhaskar Bhat, Titan’s managing director. He explained that the industry had
seen a tough period with gold imports declining significantly.
Bhat added that the large decrease was due
to the closure of the company’s ‘Golden Harvest’ program, a purchase scheme
that enabled customers to buy its Tanishq jewelry at a discounted price. The
program was a large revenue generator the previous year, the statement said.
“All our brands are working on new product
and marketing campaigns for the festive [Diwali] season ahead,” Bhat added.
Revenue for the six months to September
was down 17 percent to $816.6 million (INR 53.41 billion) and net profit for
the half year dropped 29 percent to $45.3 million (INR. 2.96 billion).
Titan, a Bangalore-based
joint venture between Indian conglomerate Tata and the Tamil Nadu Industrial
Development Corporation, had 1,246 retail stores across India on September 30.
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Tags:
India, Rapaport News, retail, Titan
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