Titan Industries Limited has closed the first half of the current financial year with a profit after taxes of Rs 4.55 crore against the loss of Rs 1.29 crore in the same period last year, on the back of growth in sales by almost 35 per cent. Due to the seasonal pattern of sales for both watches and jewellery, profitability tends to be skewed to the second half of the financial year, when trade purchases peak to meet consumer demand in the festival and marriage seasons. However, the company has posted a profit at the end of the first six months of the current financial year, for the first time since September 2000.

The first half of the financial year has seen growth in watch sales by 12 per cent to Rs 251.61 crore and by 70 per cent in jewellery sales to Rs 247.05 crore. EBITDA is up by Rs 2.89 crore compared to the corresponding period last year. There is also an aggregate saving of Rs 3.11 crore in interest and other expenses, thus generating a profit before taxes of Rs 2.61 crore as against the loss (before taxes) of Rs 3.60 crore last year in the same period.

Performance in the second quarter has also been encouraging, with sales of watches growing by 17 per cent to Rs 156.07 crore, and jewellery by 49 per cent to Rs 132.93 crore. Interest expenses came down by 24 per cent to Rs 8.23 crore, and the second quarter ended with a profit after taxes of Rs 10.33 crore, up by 66 per cent from Rs 6.22 crore the year before.

A noteworthy feature of the period has been the additional outlays on brand-building. The company is the market leader in the domestic Indian market for watches with Titan and for jewellery with Tanishq. During the six-month period, brand-building expenses were higher than in the previous year by Rs 10 crore, and while this will have a long-term positive impact on both brands, it has already delivered results by contributing to the increased level of sales in the current period.