The Hindu Business Line : Titan net doubles to Rs 20.6 cr

TITAN Industries nearly doubled its second quarter net profit to Rs 20.6 crore from Rs 10.33 crore in Q2 2005, driven by a sharp rise in sales of watches and jewellery.

The second half of the year is expected to see a surge in demand from the traditionally strong festival season, even as revenues touched Rs 366.5 crore in the second quarter. Profits in the first half of the year (Rs 25.63 crore) have exceeded last year's full year profits of Rs 24.95 crore.

Watch sales grew 24 per cent taking the time products contribution to revenues to Rs 193.39 crore, while jewellery sales grew 30 per cent, accounting for Rs 172.68 crore of sales.

The company has made a provision of Rs 15.23 crore as advances to overseas subsidiaries/associates represented by inventories held by the latter. The first half results are not indicative of the full year performance as sales and profits are expected to peak in the second half, according to the company.

Interest costs for the company continued their downward trend, falling by 27.5 per cent from Rs 8.23 crore last year to Rs 5.97 crore during the second quarter this year.

Earlier in the quarter, Titan had announced it might sell securities (including convertible bonds) amounting to Rs 127 crore to finance its retail store expansion.

On Friday, the Titan Ind stock closed down 2.1 per cent at Rs 395.45 on the BSE.

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