Retail companies are expected to report flat profits for September 2009 quarter. However, we expect PRIL to report 39% net
profit growth whereas Titan is expected to witness 17% decline in earnings due to margin squeeze in its jewellery business.
We expect Pantaloon Retail India Ltd to post a higher revenue growth at 26% this quarter driven by improvement in SSG attributed to improvement in business environment and reduced competitive pressures.
We expect Titan to deliver revenue, operating profit and earnings growth of 15%, (-)11.7% and (-)17.4%, respectively, in Q2F10. Watch revenues are expected to post a high growth of 18% this quarter. We expect jewellery business to demonstrate a revenue
growth of 14% driven largely by 22% increase in price of gold. Jewellery segment volumes are expected to decline 8%.