Tata Group firm Titan Co today reported 39.41 per cent decline in net profit at Rs 145.39 crore for the second quarter ended September 30, hurt by sharp drop in income from jewellery business.
The company had posted a net profit of Rs 239.98 crore in the same quarter last fiscal, Titan Co said in a BSE filing.
Net sales during the period under review stood at Rs 2,654.68 crore as against Rs 3,564.67 crore in the same period last fiscal, it added.
“The retail sentiment has been extremely poor in this quarter,” the company said.
The firm’s jewellery business recorded an income of Rs 1,981 crore during the quarter as compared to Rs 2,929 crore in the same period last fiscal.
“The sharp drop is largely due to the premature redemption of Golden Harvest scheme that the company had to do in the previous year in view of the changes in the Companies Act, 2013 that brought such schemes under the ambit of public deposits,” it said.
Commenting on the performance, Titan Co Managing Director Bhaskar Bhat said, “This was an extremely challenging quarter for the company and we witnessed a decline of 25 per cent.”
The jewellery business had a difficult quarter with a decline over last year, he said, adding “the industry saw a tough period with gold import declining significantly”.
Titan Co shares ended 0.50 per cent down at Rs 348.70 per scrip on the BSE today.