Titan Company share price fell nearly 10% in early trade today, as the luxury goods firm on Tuesday reported a 1.8% rise in standalone net profit at Rs 320.16 crore for the second quarter ended September 30, 2019, affected by subdued performance in jewellery business. "The jewellery and watch manufacturer had posted a standalone net profit of Rs 314.38 crore in the same quarter last year," Titan Company said.
Additionally, the company, that derives a large chunk of its revenue from the jewellery business also lowered the guidance for its jewellery sales growth guidance to 11-13% from 20% earlier for the next two quarters.
Titan Company share price opened 9.6% lower on the BSE today. Shares of Titan tanked to the intraday low of Rs 1,160 on BSE, against the last closing value of Rs 1,283.85. The stock has moved below its 50 and 150-day simple moving average today. The stock has gained over 26% year-to-date but has fallen 10 % in one week and over 6% in the last month.
As per market depth data available on the BSE, there was 80% selling against 20% buying on the stock. Overall, shares amounting to 4.1 lakh and 98.5 lakh shares changed hands on BSE and NSE, both above 5,10 and 20-day average volume traded.
Total income rose marginally by 0.7%, while revenue from operations during the July-September quarter was at par with last year's figures. The jewellery business had a subdued quarter due to very high gold prices, recording revenue of Rs 3,528 crore as compared to Rs 3,582 crore last year. The watches business recorded an income of Rs 719 crore against Rs 676 crore in the previous year, a growth of 6.4%.
CK Venkataraman, managing director, said, "The company has done well across all its businesses in the second quarter given the subdued market and consumer sentiments. For the second half of FY 20, we are gearing up on all fronts to stimulate demand with innovative campaigns for new exclusive collections that are lined up for launch across all our brands."
As of 11:30 am, Titan shares were trading 8.51% or 109 points lower at Rs 1,174 on the BSE and 8.42% or 108 points lower at Rs 1,175 on the NSE.
By Rupa Roy