MUMBAI, June 26 Indian jewellery retailer Titan
Industries expects higher interest costs from
government curbs on gold financing to hurt earnings for the
fiscal year ending March 2014, despite falling gold prices
driving up sales, a top company executive said.
Indian jewellery makers have been hit by a series of
government restrictions as India scrambles to stem a swelling
current account deficit. The central bank has imposed measures
forcing customers to pay upfront for gold and has prohibited
credit from suppliers or bullion banks for import of gold for
India, the world's biggest gold buyer, has also raised the
import duty on gold twice since Jan. 1, doubling it to 8
"Even bankers are not able to tell us how we can import
gold, finance gold and so on. It's in a state of flux right
now," Bhaskar Bhat, Titan's managing director, told Reuters.
Titan, part of the Tata conglomerate, sells gold jewellery
under the Tanishq brand. It also sells watches and sunglasses.
Titan Industries posted a 20 percent growth in net profit in
the year-ended March 2013.
Earlier on Wednesday, jewellery maker Rajesh Exports
said it expects sales and earnings to grow at 10
percent in the current financial year to March, from 25 percent
(Reporting by Swati Pandey in MUMBAI; Editing by Prateek