After a record performance in the first quarter of 2011-12, Titan Industries continued to record growth in top line and profits in Q2. The overall income in the second quarter, July to September 2011, was Rs2,124.58 crore, a growth of 37 per cent over last year's income of Rs1,551.22 crore during the same period. The income for April to September 2011, the first half of this financial year, stands at Rs4,172.51 crore, registering a growth of 48.4 per cent over last year.
The news on profits is also encouraging. The net profit for Q2 is Rs148.20 crore, up from Rs127.77 crore last year — a growth of 16 per cent. The net profit for the six months ended September 2011 is Rs291.56 crore, up 39.5 per cent over last year. The profit before tax is Rs209.58 crore for Q2 and Rs406.13 crore for the first half. The company, and in particular the watch business, was affected by input cost increases and adverse currency fluctuations leading to pressure on margins.
All businesses of the company have recorded good performance compared to last year due to good retail sales growth. The income for watches was Rs417.41 crore in Q2 as compared to Rs359.43 crore last year, a growth of 16.1 per cent. On the other hand, the jewellery business recorded an income growth of 44.7 per cent in Q2 over last year. It had an income of Rs1,631.23 crore this year in Q2 as compared to Rs1,127.36 crore last year. Other businesses of the company comprising precision engineering, a B2B business, the eyewear business and accessories grew by 16.3 per cent in Q2. The combined income of these businesses was Rs65.17 crore in Q2. Last year income for Q2 was Rs56.03 crore.
The Titan Industries retail chain is 737 stores strong, as on September 30, 2011, with the retail area crossing 9.2 lac sq ft nationally for all its brands.
Bhaskar Bhat, managing director, Titan Industries, stated, "The second quarter has been a healthy quarter for us, recording an income growth of 37 per cent despite a slowdown being witnessed by the economy. This performance was driven by good retail growth for most of our brands and various initiatives undertaken by all businesses to introduce exciting products and enhance customer satisfaction. During the second quarter, considered as an 'off-season' quarter, demand had to be stimulated through investment in advertising and in consumer offers. This strategy has helped keep retail sales growing — such investments are likely to continue through Q3."