Titan Industries has dipped 5% to Rs 215 after reporting lower-than-expected 16% year-on-year (y-o-y) growth in net profit at Rs 148 crore for the quarter ended September 2011. Analyst expected a net profit of Rs 157 crore from the apparels and accessories maker. However, total income grew 37% to Rs 2,125 crore on y-o-y basis.
“The company and, in particular, the Watch business was affected by input cost increases and adverse currency fluctuations leading to pressure on margins," a Tata Group firm said in a filing to the stock exchanges.
The company's employee costs went up by 19.8% on account of new store openings. Cost of advertising, too, increased by 47.5%.
“Demand had to be stimulated through investment in advertising and in consumer offers," said Bhaskar Bhat, managing director of Titan.
A combined 150,000 equity shares have changed hands on the counter on opening deals.
