Redemption of Golden Harvest scheme lifts Titan net 28.3% in Q2

Watches division has also done well backed by successful activations for both Titan and Fastrack brands

 

Titan Company Ltd today reported 28.3% rise in net profit at Rs 240 crore for the second quarter ended September 2014 compared to Rs 187 crore in the corresponding quarter last year. The income from operations in the second quarter, July to September 2014, was Rs 3564.67 crore, a growth of 55.7% over last year's income of Rs.2290.02 crore during the same period.

The growth in profit was mainly on account of a handsome growth in jewellery business of the company due to redemption of Golden Harvest accounts of existing customers, which had to be closed due to regulatory changes.

The profit before tax is Rs 320.11 crore for the second quarter.

The Watches division has also done well in the quarter backed by successful activations for both Titan and Fastrack brands. A new brand campaign on "gifting of time" went on air for Titan watches. The income for watches division grew 20% to Rs 527.46 crore in Q2 as compared to Rs 439.07 crore last year.

The jewellery business recorded a robust income growth of 64.8% in Q2 over last year. It had an income of Rs 2929.38 crore this year in Q2 as compared to Rs 1777.39 crore last year.

Other businesses of the Company comprising Precision Engineering, a B2B business, the Eyewear business and accessories grew by 20.9% in second quarter. The combined income of these businesses was Rs 137.90 crore in Q2, a growth of 21% over Rs 114.03 crore reported in the same period last year.

Titan's retail chain has 1136 stores with a retail area crossing 1.53 million sq ft for all its brands.

Bhaskar Bhat, Managing Director Titan said, "This was an extra-ordinary quarter for the company and we witnessed an income growth of over 55% on account of an encouraging performance by all divisions, especially the jewellery business where the accounts of our Golden Harvest Scheme customers had to be closed based on regulatory changes. Gold prices have been stable and inflation is falling which would help in providing a lift to the economy."