The Hindu Business Line : Titan net profit drops 18.5 pc in Q1

Watch-maker Titan Industries has posted an 18.5 per cent drop in net profit to Rs 4.09 crore, while income from operations grew 49.8 per cent to Rs 449.92 crore during the first quarter of 2006-07.

A press statement from the company said last year there was a deferred tax credit of Rs 3.63 crore and taxes payable were Rs 1.25 crore.

Profit after taxes at Rs 5.02 crore was thus higher than the profit before tax for the quarter.

This year, the deferred tax credit is only Rs 0.67 crore and taxes payable for the quarter are Rs 1.84 crore. Thus, profit after taxes at Rs 4.09 crore is lower than in the first quarter of the previous year.

The company's profit before taxes doubled to Rs 5.26 crore in the first quarter this year.

The statement said sales income of the watch division grew 18 per cent to Rs 148.68 crore.

The jewellery division's sales income grew 70 per cent to Rs 288.25 crore this quarter. The sales turnover of the company's new business - precision engineering and accessories and licensed products - grew 60 per cent to Rs 13.56 crore this quarter.

Titan Industries' spends on advertising and brand building went up by over 50 per cent to cross Rs 40 crore during the first quarter.

The company also completed the allotment of the new shares and debentures on May 12, consequent to the rights issue.

With a total inflow of Rs 126.78 crore from the rights issue, the company plans to expand its retail outlets and manufacturing base.