Titan sees net profit up 50 pct in FY08

NEW DELHI (Reuters) - Watch and jewellery maker Titan Industries Ltd sees 2007/08 profit rising at least 50 percent, its managing director said on Thursday.

Revenue is expected at 31.5 billion rupees, compared with 2006/07 revenue of 21.4 billion rupees, while the company's EBITDA margin is likely to remain at about 11 percent, Bhaskar Bhat told reporters on the sidelines of a conference.

"We did 1 billion (rupees) last year, profit after tax. The minimum to expect is 50 percent growth," he said, when asked about profits for the current fiscal year.

Bhat said the company was also eyeing the U.S. market for its jewellery business.

Titan expects to sell 10 million watches this fiscal year, nine million of them in India, Bhat said.

It also expects a 50 percent rise in export revenue from watches in this fiscal year, from 1 billion rupees last year.

"Our medium-term target is to sell a million watches in exports," Bhat said.

Titan plans to take the number of its watch stores to 270 this fiscal year, from 225 currently. A majority of them will be franchisees, he said.

Titan sells watches under the premium Titan brand and the economy Sonata brand, and jewellery under the Tanishq brand. It also sells prescription eyewear and markets Hugo Boss watches in India.

While jewellery contributes about 66 percent of revenue, and watches make up 33 percent, the margin on jewellery is about one-third that of watches, Bhat said.

Titan Industries shares were marginally higher at 1,456 rupees, after touching an intra-day high of 1,484 rupees.