New Delhi: Shares of Tata group firm Titan Company today fell as much as seven per cent in morning trade on the bourses even as the company reported over 28 per cent jump in its second quarter net profit.
Marketmen attributed the fall in the counter despite second quarter performance to the earnings during the period being largely driven by jewellery business of the company due to redemption of Golden Harvest accounts of existing customers, which had to be closed due to regulatory changes.
Titan Company yesterday reported 28.57 per cent jump in net profit at Rs 239.98 crore for the second quarter ended September 30, 2014 on account of sharp increase in jewellery sales.
Reacting to the numbers shares of the company opened on a weak note and then lost further ground to touch an intra-day low of Rs 391, registering a fall of 6.91 per cent over its previous closing price.
Similar movement was seen in the National Stock Exchange as well where the stock after opening at Rs 409.90 fell 6.87 per cent to reach an early low of Rs 390.55.
Titan's net sales were at Rs 3,564.67 crore during Q2, 2014-15, up 55.66 per cent as against Rs 2,290.02 crore in the year-ago period, Titan said in BSE filing.
"This was an extraordinary quarter for the company and we witnessed an income growth of 55 per cent on account of an encouraging performance by all divisions, especially the jewellery business where the accounts of our Golden Harvest Scheme customers had to be closed based on regulatory changes," Titan Company Managing Director Bhaskar Bhat said.