Demand in southern states has been hit badly to due to monsoons, said S Subramaniam, CFO, Titan.

Titan reported a growth of 31 percent in profit before tax at Rs 487 crore. The sales income Rs 4,269 crore in the quarter ended June.

The company showed a huge improvement in the watch business with a near doubling of margins..

On jewellery business, Subramaniam said the softening of gold prices is good in a way as it does bring in customers who possibly had been waiting to buy it at a more opportune time.

"The problem is that the rupee has been weakening and internationally gold prices have fallen, the rupee weakening is in a way keeping it at similar levels as it was in the past,” he said.

“The festive season is just about starting and it is still early days to give any prediction of how the demand situation is going to be,” Subramaniam said.