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Titan's 2Q Sales +37%, Profit +16% to $30M

Jewelry Sales Surge 45%

Oct 24, 2011 9:11 AM By Dilipp S Nag

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RAPAPORT... Titan Industries Ltd. reported net sales rose 37 percent year on year to $420.6 million (INR 20.96 billion) during its second fiscal-quarter that ended on September 30, 2011. Net profit grew 16 percent to $29.7 million (INR 1.48 billion). The company, which owns the Tanishq jewelry brand, attributed the strong growth to improved sales across all its divisions and retail chains.

Bhaskar Bhat, Titan's managing director, said, ''This performance was driven by good retail growth for most of our brands and various initiatives undertaken by all businesses to introduce exciting products and enhance customer satisfaction.''

Titan's jewelry sales increased by nearly 45 percent to $327.3 million (INR 16.31 billion), while sales at its watch division rose 16 percent to $83.8 million (INR 4.17 billion). However, the company said that its watch business was affected by cost increases and adverse currency fluctuations, leading to pressure on margins. Sales at its eyewear and precision engineering divisions grew 16.3 percent.

Bhat stated that during the second quarter, which is considered as an “off-season” period, demand had to be stimulated through investment in advertising and in consumer offers. Total expenditure grew 39 percent to $382.6 million (INR 19.07 billion) during the quarter.

He added that the strategy has helped keep retail sales growing and such investments are likely to continue through third quarter. The company operated 737 retail stores as of September 30.