Titan net down 35% to Rs 3 crore

Titan Industries' net profit has plunged 34.65 per cent to Rs 2.98 crore for the third quarter ended December 31, 2003 as against a net profit of Rs 4.56 crore for the previous corresponding quarter.

Turnover has appreciated by 32 per cent to Rs 301.74 crore (Rs 228.96 crore). The drop in margins can be attributed to a one-time restructuring exercise which the company made and also due to the increase in total expenditure.

The total expenditure has grown to Rs 279 crore (Rs 202 crore). Advertising cost has gone up to Rs 21.68 crore (Rs 13.37 crore) while consumption of raw materials has gone up to Rs 177.04 crore (Rs 136.32 crore).

The company's exports was 48 per cent higher at $11.21 million for the nine months to December from $7.55 million in the same period last year.

The export business of the watch division was impacted by higher sales and marketing costs of Rs 4.94 crore and exchange loss of Rs 1 crore as against the exchange gain of Rs 4.03 crore in the previous year.

The turnover of the time products division went up from Rs 307.16 crore to Rs 350.34 crore for the nine month period. The jewellery division's sales grew by more than 35 per cent to Rs 321.75 crore (Rs 232.75 crore).

The company has stated that sales in the jewellery division would have been even higher, but this was impacted by restructuring initiative aimed at improving future operations. The outlook for the remaining months remains optimistic, the company has added.