Titan Industries has moved higher by nearly 8% to Rs 279, after reporting a strong 42% year-on-year (yoy) jump in net sales at Rs 3,088 crore for the quarter ended June 30, 2013 (Q1), largely driven by jewellery on account of drop in gold prices. The company had sales income of Rs 2,175 crore in a year ago quarter.
The net profit for the same period grew by 16.9% to Rs 182 crore from Rs 156 crore last year, Titan Industries said in a press release.
Analysts on average had expected the company to report a net profit of Rs 188 crore on revenue of Rs 2,740 crore in the quarter.
However, the company’s operating profit margin declined by 170 bps to 7.9% during the quarter, mainly due to high sales of plain gold jewellery and coins, which deliver lower margins.
Margins in both watch and jewellery businesses were (also) impacted due to change in product mix, Bhaskar Bhat, Managing Director of the company said.
Meanwhile, Bhat said, "For the coming quarter we are working on our plans to deal with the weak consumer sentiment as well as the impact of recent regulatory measures introduced in the financing of gold imports."
The stock opened at Rs 264 and hit a high of Rs 280 on NSE. A combined 2.84 million shares changed hands on the counter so far on NSE and BSE.
The net profit for the same period grew by 16.9% to Rs 182 crore from Rs 156 crore last year, Titan Industries said in a press release.
Analysts on average had expected the company to report a net profit of Rs 188 crore on revenue of Rs 2,740 crore in the quarter.
However, the company’s operating profit margin declined by 170 bps to 7.9% during the quarter, mainly due to high sales of plain gold jewellery and coins, which deliver lower margins.
Margins in both watch and jewellery businesses were (also) impacted due to change in product mix, Bhaskar Bhat, Managing Director of the company said.
Meanwhile, Bhat said, "For the coming quarter we are working on our plans to deal with the weak consumer sentiment as well as the impact of recent regulatory measures introduced in the financing of gold imports."
The stock opened at Rs 264 and hit a high of Rs 280 on NSE. A combined 2.84 million shares changed hands on the counter so far on NSE and BSE.
