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Jan 30, 2009Titan Industries Limited –Nine months sales grow by 34.2% and Profit before taxes by 54.2%

Titan Industries Limited

30th January 2009: Titan Industries Limited ended the first nine months of 2008 - 09 with a sales turnover of Rs 2958.79 crore, compared to Rs. 2205.15 crore during the nine months of the previous year. Similarly, Profit before Taxes (PBT) for the current nine-month period is at Rs 204.06 crore compared to the PBT of Rs. 132.31 crore for the nine months of the year 2007-08.

The Company ended the third quarter October-December 2008 with a sales turnover of Rs 1034.88 crore, registering a growth of 27.2% over the third quarter of last year. Profit before Taxes during this period rose by 23.1% to Rs. 46.84 crore compared to 38.06 crore for the same period last year.

During the quarter ended December 2008, due to reduction in the discount rate for actuarial valuation of Gratuity and Leave salary, profitability was impacted to the tune of Rs.12.78 crore. Also, during the quarter, the Company has provided an amount of Rs. 17.58 crore towards income tax and interest thereon of earlier years. .Net profit for the quarter ended Dec 08 was impacted by an amount of Rs 30.36 crore on account of the above provisions.

Both the Watch Division and the Jewellery Division grew their businesses. During the nine months ended December 2008, the Watch Division sales grew by 9.6% from Rs. 609.90 crore last year to Rs. 668.45 crore this year. Jewellery division grew substantially by over 44% to Rs. 2156.59 crore this year from Rs. 1496.66 crore during the corresponding period last year. The Eyewear business has expanded its network aggressively, has now 50 stores and will soon become a national player. The Precision Engineering Division of the Company has grown by 45% over last year clocking a turnover of Rs. 58 crore for the nine month period.

The present economic slowdown has had some impact on the company’s operations during the quarter. The watch division has seen lesser walk-in’s in malls and large format stores in big cities resulting in lower growth. However, customers have continued the momentum of purchasing jewellery from our Tanishq and Gold plus outlets and the jewellery division has grown at a robust pace.

The coming months would see a number of new product offerings from all the watches and jewellery divisions, to stimulate walk-ins and sales at our retail outlets.

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