Shares of Titan Industries Ltd on Friday soared by over 9 per cent after the company reported a 16.88 per cent increase in standalone net profit for the first quarter ended June 30, 2013.

The company’s scrip ended the day 8.55 per cent higher at Rs. 281.70 on the BSE. During the day, the scrip gained 9.24 per cent to Rs. 283.5.

At the NSE, the stock zoomed by 9.46 per cent to Rs 283.95.

In terms of volume, 6.17 lakh shares of the company changed hands on the BSE, while over 56 lakh shares were traded on the NSE.

“Titan Industries gained as the company reported strong sales numbers with growth of 42% YoY. The higher sales were driven by jewellery business on account of drop in gold prices,” said Nagji K. Rita, Chairman & MD, Inventure Growth and Securities.

Titan Industries had on Thursday reported a 16.88 per cent increase in standalone net profit at Rs. 182.48 crore for the first quarter ended June 30, 2013, on the back of strong sales in the jewellery segment.

The company had reported a net profit of Rs. 156.12 crore for the same quarter a year ago.

Titan’s net sales were at Rs. 3,087.79 crore during the quarter under review, an increase of 41.98 per cent as against Rs. 2,174.74 crore in the corresponding period last year.

Commenting on the company’s performance, Titan Industries Manging Director Bhaskar Bhat had said, “The first quarter has seen encouraging top-line growth, largely driven by jewellery on account of drop in gold prices.

“Margins in both watch and jewellery businesses were impacted due to change in product mix. Consumer sentiment continues to be weak and discretionary spend was subdued.”

While giving outlook for the quarter ahead, Mr. Bhat had said, “For the coming quarter, we are working on our plans to deal with weak consumer sentiment as well as the impact of recent regulatory measures introduced in the financing of gold imports.”

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