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Titan Industries loses its sheen on concerns about gold imports

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Capital Market
Last Updated : Jun 11 2013 | 4:00 PM IST

Titan issued a statement on Reserve Bank of India's clarification on gold imports during trading hours today, 11 June 2013.

Meanwhile, the S&P BSE Sensex was down 185.29 points or 0.95% at 19,255.78.

On BSE, 3.13 lakh shares were traded in the counter as against average daily volume of 9.37 lakh shares in the past one quarter.

The stock hit a high of Rs 263.70 and a low of Rs 245.40 so far during the day. The stock had hit a 52-week low of Rs 211.70 on 14 June 2012. The stock had hit a record high of Rs 313.60 on 30 November 2012.

The stock had underperformed the market over the past one month till 10 June 2013, declining 7.72% compared with the Sensex's 3.19% slide. The scrip had, however, outperformed the market in past one quarter, rising 2.77% as against Sensex's 1.23% slide.

The large-cap company has equity capital of Rs 88.78 crore. Face value per share is Re 1.

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Titan Industries today, 11 June 2013, said that the Reserve Bank of India (RBI) has clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin. The RBI has also clarified that credit of any kind from suppliers or bullion banks for import of gold for domestic use is prohibited, Titan said. This will affect import of gold through all non consignment routes like gold on lease/loan, Titan Industries said. Titan imports gold for its retail gold jewellery business.

Titan said it had sought some clarifications on gold imports after the Reserve Bank of India issued a notification on 4 June 2013 on changes to the current terms governing import of gold in India.

Titan Industries' net profit surged 28.2% to Rs 184.97 crore on 14.8% growth in net sales to Rs 2593.13 crore in Q4 March 2013 over Q4 March 2012.

Titan Industries retails branded gold jewellery under the brand name Tanishq. It sells watches under a premium brand Titan and economy brand Sonata.

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First Published: Jun 11 2013 | 2:42 PM IST

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