The second quarter results of Titan Industries Limited have shown a marked improvement over its first quarter results with a profit before tax of Rs.4.71 crores as against a loss of Rs.14.61 crores in the first quarter. Income is higher by 35 per cent having gone up from Rs.102.80 crores in the first quarter to Rs. 139.19 crores in the current quarter. Secondary sales (sales to final consumers) in both watches and jewellery also showed encouraging growth and an increase in the market share of the Company in both its businesses.

As compared to the second quarter of the previous year, there is a decline in income and consequently, in profits. While income reduced from Rs.173.64 crores to Rs.139.19 crores, profit before tax has come down from Rs.11.59 crores to Rs.4.71 crores and profit after tax from 
Rs 10.65 crores to Rs 2.95 crores.

Consequently, for the half-year ended 30 September 2001 income is lower by 23 per cent, coming down from Rs.297.52 crores in the previous year to Rs. 241.99 crores thus resulting in a loss of Rs. 9.90 crores as compared with a profit of Rs.11.74 crores in the previous year. After adjusting for taxes, this has resulted in a net loss of Rs 6.48 crores as against a net profit of Rs 10.78 crores in the previous year. However, the results of the previous year included a profit on sale of shares amounting to Rs. 9.66 crores and to that extent, is not comparable.

The main reason for the profit decline in H1 has been the reduction in the primary sales of the Watch Division. Macro-economic conditions combined with trade downstocking as also the three-week “shift” of the festive season with Diwali moving from October last year to mid-November this year, have been primarily responsible for lower sales to the trade. However, sales to final consumers continued to show growth as compared to the previous year with watch sales growing by 1 per cent and jewellery sales growing by over 45 per cent Both business units registered an increase in market share.

With the commencement of the festival season, October sales in both watches and jewellery have been more than satisfactory, not just to the trade but also to the final consumer.

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