Titan's 3Q Sales -11%, Profit -19%

Titan Company Limited, the parent company of India's Tanishq brand, reported that sales of jewelry and watches, in addition to revenue from other business areas fell 11.3 percent year on year to $425.3 million (INR 26.76 billion) for the third quarter that ended on December 31.
Operating expenses fell 11 percent to $388.8 million (INR 24.46 billion) but profit after taxes fell 18.8 percent to $26.3 million (INR 1.65 billion), Rapaport reports.
Titan's jewelry sales, representing the majority of its revenue, fell 15.4 percent to $338 million (INR 21.27 billion), while watch sales rose 7.5 percent to $72.4 million (INR 4.55 billion).
Titan stated that jewelry sales during the festive season, in particular, were poor and that there was lower demand for gold jewelry for the duration of the quarter. The jewelry industry has been adversely impacted by regulatory measures that were implemented this year to restrict gold imports, according to the firm.
Bhaskar Bhat, the managing director of Titan Company, said, ''The sentiments in the market continue to be weak and the company witnessed an extremely poor retail sales quarter for both its watches and jewelry businesses. The impact of the festive season this quarter was much below our expectations. Although the stock market has picked up, the high inflation levels have resulted in lower disposable income in the hands of consumers. In the last quarter of this financial year, we have planned aggressive sales promotions for both watches and jewelry to stimulate demand and generate consumer interest in these categories. We will continue to make adequate investments in mass communication and build our brands.''
Titan operated 1,039 retail stores as of December 31 and while its primary line of business is jewelry, the firm also manufactures and sells eyewear and precision engineering equipment and it oversees a business-to-business operation.