Titan Company Ltd on Friday reported a 2.85 per cent decline in net profit at Rs 177.27 crore for the first quarter ended June 30, 2014, due to lower jewellery sales.
The company had reported net profit of Rs 182.48 crore in the corresponding quarter a year ago.
Titan's net sales were at Rs 2,853.66 crore during Q1, 2014-15, down 7.58 per cent as against Rs 3,087.79 crore in the year-ago period.
"As expected the sales income for the company in Q1 dropped by 7.6 per cent largely on account of an unprecedented Q1 of 2013-14 which had witnessed a 47 per cent growth in the jewellery business last year when gold prices fell sharply," Titan said in statement.
Commenting on the results, Titan Industries Managing Director Bhaskar Bhat said: "Due to extraordinary first quarter witnessed by jewellery business last year, the top line growth in this quarter was tough. Regulatory pressures faced by the jewellery industry have amplified the challenge."
During the quarter, Titan's jewellery business declined by 10.1 per cent to Rs 2,325.27 crore while watches business grew by 10.4 per cent to Rs 439.98 crore.
Overall expenses of the company were at Rs 2,641.4 crore during the quarter under review, down 8.22 per cent as compared with Rs 2,877.35 crore in the year-ago period.
Shares of Titan Company closed at Rs 326.15 apiece, down 4.37 per cent from their previous close on the BSE.