Titan Industries Limited has registered a loss of Rs.14.61 crores in the first quarter. The Company had made an operating loss of Rs.9.51 crores in the first quarter of the previous year before providing for the extra-ordinary profit of Rs.9.66 crores from sale of shares.

Sales income declined by 11% from Rs.113.96 crores to Rs.102.27 crores, largely due to the economic slowdown in India. Despite achieving an increase in market share, watch sales declined due to trade downstocking and reduced consumer spending. However, jewellery sales continued to show growth, increasing to Rs.36.16 crores from Rs.33.51 crores in the previous year. Exports of watches and jewellery declined marginally from Rs.9.55 crores in the previous year to Rs.8.49 crores.

Operating expenses were kept in check including advertising expenditure which was cut by 35%. Adverse foreign currency fluctuations, however, resulted in an exchange loss of Rs.1.46 crores as compared to an exchange gain of Rs.0.74 crore in the previous year, contributing to the higher operating loss in the current year.

Despite the first quarter performance and the current economic outlook, the Company expects to achieve a higher turnover in the full 12 month period and register profit in both its businesses.