Strong Jewelry Sales for Titan in Q2

Despite the overall slowdown in consumer demand for jewelry in the face of high and volatile gold prices over the last few months, Titan Industries reported an impressive 53 percent rise in income and an 88 percent rise in net profit in the second quarter.

In the jewelry segment, where Titan operates the Tanishq and Gold Plus chain of stores, the company reported a strong 71.4 percent increase in revenue to Rs. 7.4 billion ($151 million).

Income from watches and eyewear grew 25 percent to Rs. 3.5 billion ($71 million) year-over-year.

Overall income from the watch and jewelry divisions during the quarter, ended on September 30, stood at Rs. 10.9 billion ($22 million) as, while net profit across both segments rose to Rs. 871.4 million ($17.77 million) this year.

During the first half of fiscal year 2009, jewelry sales reached Rs. 13.6 billion ($277.32 million) from 9.05 billion ($184.54 million) last year registering a 50.3 percent rise, while watch sales grew by 19.3 percent to Rs. 4.75 billion ($96.9 million). Total sales during the six month period rose 37 percent to Rs. 19 billion ($387.43 million) and profits doubled from Rs. 589.4 million ($12 million) to Rs. 1193.6 million ($24 million).