Bengaluru, May 6 (IANS) Watch and jewellery major Titan Company Ltd on Friday reported a Rs.706 crore net profit (standalone) for 2015-16, registering 14.2 percent decline from Rs.823 crore in 2014-15 due to weak market conditions.
On a consolidated basis too, net profit declined 15.4 percent to Rs.690 crore from Rs.816 crore.
“The fiscal year as well as fourth quarter (January-March) were challenging on account of weak market conditions for all businesses and new regulatory curbs on the jewellery business,” the city-based Tata group firm said in a statement here.
Standalone income from net sales at Rs.11,177 crore was 5.2 percent less in 2015-16 than Rs.11,791 crore in 2014-15.
Consolidated income too declined 5.2 percent to Rs.11,180 crore from Rs.11,801 crore in 2014-15.
“The subdued performance came in the backdrop of an environment where the consumer sentiment did not pick up as expected,” the company said.
Profit before tax declined 17.5 percent to Rs.871 crore from Rs.1,056 crore year ago on standalone and to Rs.855 crore from Rs.1,049 crore on a consolidated basis.
“The strength of our brands was tested in an environment of subdued sales in all retail formats and related categories. Weak consumer sentiment had an impact on retail sales across our businesses,” said Titan.
Of the total sales, watches contributed Rs.1,954 crore, 1.7 percent down over the previous year, and jewellery segment Rs.8,717 crore, a decline of 7.6 percent.
“Absence of revenues from the golden harvest scheme for the first eight months of the fiscal under review and disruption caused by the industrywide strike in the last quarter (Q4) contributed to the decline in revenue,” the statement added.
Income from eyewear business was Rs.372 crore, which is an increase of 11.8 percent. Other businesses, including precision engineering, accessories and fragrances accounted for Rs.235 crore for the fiscal.
“We are looking at opportunities of profitable growth while making investments behind our brands. We will also explore new avenues for technology induction in products and retail,” said Titan managing director Bhaskar Bhat in the statement.
The company added 82 stores for its brands, taking the total to 1,283 across the country, with 1.7 million square feet of retail space.