Titan Company Ltd on Friday reported an 8.34 per cent rise in consolidated net profit at Rs 301.11 crore for the quarter ended September 30, 2018, dragged by provisions made for its corporate deposits in the IL&FS group.
The company had reported a net profit of Rs 277.93 crore for the July-September period of the last fiscal.
Titan said as on September 30, 2018, as a part of treasury operations, it has invested in inter-corporate deposits amounting to Rs 145 crore with IL&FS and its subsidiary.
The growth in the profit before tax for the quarter was muted due to provision made to the tune of Rs 29 crore for investments made as part of treasury operations in inter-corporate deposits in the IL&FS group and certain one-time franchisee compensations on store takeover in the jewellery segment, Titan said in a BSE filing.
Total income during the quarter under review stood at Rs 4,595.13 crore. It was Rs 3,603.01 crore in the corresponding period last fiscal.
Titan said revenue from operations for the period up to June 30, 2017 includes excise duty on goods sold.
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With the implementation of Goods and Service Tax (GST) with effect from July 1, 2017, excise duty has subsumed into GST, and hence, revenue from operations for the period from July 1, 2017 does not include excise duty, it added.
During the second quarter, Titan's revenues from jewellery business jumped 29 per cent to Rs 3,582 crore, while revenues from watches grew by 17 per cent to Rs 676 crore.
Revenues from eyewear segment went up by 19 per cent to Rs 120 crore in the said quarter.
"The jewellery business picked up this quarter after a soft first quarter and the watches business had one of its best quarters with an extremely healthy growth in bottom line for the first half. The eyewear business has picked up too with our investments in brand building showing results now," Titan Company Managing Director Bhaskar Bhat said.
Shares of Titan Industries settled 0.37 per cent down at Rs 848 apiece on BSE.