Titan Company fell 4.12% to Rs 327 at 15:30 IST on BSE after net profit fell 2.86% to Rs 177.27 crore in 7.28% decline in total income to Rs 2916.84 crore Q1 June 2014 over Q1 June 2013.
The result was announced during trading hours today, 1 August 2014.
Meanwhile, the BSE Sensex was down 414.13 points, or 1.60%, to 25,480.84.
On BSE, so far 2.61 lakh shares were traded in the counter, compared with an average volume of 2.39 lakh shares in the past one quarter.
The stock hit a high of Rs 343.55 and a low of Rs 321 so far during the day. The stock hit a record high of Rs 362.70 on 7 July 2014. The stock hit a 52-week low of Rs 203 on 30 January 2014.
The stock had underperformed the market over the past one month till 31 July 2014, falling 3.29% compared with 1.89% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 33.88% as against Sensex's 15.51% rise.
The large-cap company has an equity capital of Rs 88.78 crore. Face value per share is Re 1.
Sales income for Titan Company in Q1 dropped by 7.6% largely on account of an unprecedented Q1 June 2014, which had witnessed a 47% growth in jewellery business last year when gold price fell sharply. While the sales income declined from Rs 3087.79 crore last year to Rs 2853.60 crore in Q1 June 2014, the profit after tax for the some period dropped by only 2.9% to Rs 177.27 crore this year. The cornpany's PBT fell 4.4% to Rs 240.47 crore in Q1 June 2014 over Q1 June 2013, Titan Company said in a statement.
The watches business in Q1 this year recorded a healthy growth of 10.4%. The income of watches business grew from Rs 398.68 crore to Rs 439.95 crore. The jewellery income fell 10% to Rs 2325.27 crore. The jewellery business continues to face regulatory pressures that have an adverse impact on sales. The company's other businesses, Eyewear, Precision Engineering and accessories grew by 3.8% to Rs.127.83 crores in Q1 June 2014 over Q1 June 2013.
The company said it has put together exciting plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches.
Retail expansion continued with a net addition of 22 stores across all its businesses in the first quarter, ending the period with a retail area of over 1.48 mn sq.ft nationally. The company's retail chain is 1100 stores strong, as on 30 June 2014 and is expanding with growth plans in place for all its retail businesses watches, jewellery and eyewear. The company also has moved into a new corporate office in Bangalore towards the end of the quarter, the company said.
Bhaskar Bhat, Managing Director of the company stated, "The consumer discretionary spend in the quarter was far more stable than what we witnessed in the past few quarters. With stability in the political environment, the market mood has been positive. However, due to an extraordinary first quarter witnessed by jewellery business last year, the topline growth in this auarter was tough. Regulatory pressures faced by the jewellery industry have amplified the challenge."
Titan Company (earlier known as Titan Industries) is India's leading producer and retailer of watches, jewellery and eyewear.
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