Wednesday, October 31, 2012

Titan Ind Q2 net profit up 22% at Rs 180 cr


Titan Industries  ' second quarter net profit rose 22 percent year-on-year to Rs 180 crore, in-line with street expectations.

Its total income in the July-Sep quarter were up lower-than-expected 9 percent to Rs 2,276 crore.

Analysts on average were expecting Titan to report a net profit of Rs 173 crore on revenue of Rs 2,425 crore, according to a CNBC-TV18 poll.

Titan's EBITDA margin rose to 11 percent from 9.6 percent, higher than analysts expectation of 10 percent.

The company's income from watches was up 13 percent to 472 crore, while jewellery business grew 6 percent to Rs 1,724 crore, Titan said on Wednesday.

Its other businesses including precision engineering, eyewear and accessories grew 49 percent to Rs 97 crore in the second quarter. 

Titan's jewellery business profit was up 35 percent at Rs 215 crore.

But, despite the 13 percent sales growth, watch segment profit was down 18 percent last quarter to Rs 55 crore, and other businesses loss widened to Rs 4 crore from Rs 1 crore in the year ago quarter.

Bhaskar Bhat, Titan's MD said that demand has had to be stimulated through investment in advertising. Therefore expectation for festive season is positive even though sale may come at a cost, he said.

As of Sep 30, Titan had 879 outlets, with retail area over 11.3 lakh square feet across its brands.

Titan Industries shares closed up 0.7 percent at Rs 259.30 on NSE. The results were announced after markets closed.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 

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