Leading watch maker Titan Company Ltd Friday reported net profit of Rs.151 crore for first quarter of 2015-16, a 14.7 percent decline from Rs.177 crore in same period year ago.
In a regulatory filing to the Bombay Stock Exchange, the city-based company said its total income for Q1 under review also declined 6.6 percent to Rs.2,724 crore from Rs.2,917 crore in like period year ago.
"Sales income dropped largely on account of weak consumer sentiment and absence of golden harvest scheme in jewellery this year," the company said in a statement here later.
Sequentially, however, net sales was up 8.4 percent from Rs.2,512 crore posted in the last quarter of last fiscal (2014-15).
"Our watches business, however, recorded nine percent growth to Rs.485 crore from Rs.444 crore year ago though sequentially declining five percent from Rs.511 crore," the statement said.
Similarly, jewellery business dropped 11 percent to Rs.2,072 crore in Q1 from Rs.2,325 crore year ago though up 13 percent sequentially from Rs.1,828 crore last quarter.
"The first quarter was challenging, as retail sales in watches and jewellery segments have been below expectations due to reduced walk-ins," said managing director Bhaskar Bhat.
May and June, in particular were poor months for the company, while rural demand was affected due to lower realisations and monsoon conditions.
"With good monsoon in sight and festive season ahead, we look forward to a better year ahead," Bhat added.
