Bangalore: Jewellery and watch maker Titan Industries Ltd reported a 9% year-on-year increase in first-quarter net profit, but sales lagged the company’s expectations as consumer sentiment weakened on slowing economic growth.

Net profit in the three months ended 30 June rose to Rs 156.1 crore from Rs 143.5 crore a year ago. Sales grew 9% to Rs 2,205.7 crore.

“The first quarter has been disappointing by way of sales growth due to several factors leading to a weak consumer sentiment,” managing director Bhaskar Bhat said in a statement. “Consumer response was good only to discount offers, thereby impacting margins, specially in watches and eyewear.”

High inflation, a weak rupee and a deficient monsoon could hurt future performance, Bhat said.

Titan gets a majority of its sales from the jewellery business where it owns the Tanishq brand. It sells watches under its Sonata and Fastrack brands, among others, operates an eye wear business and has a presence in the precision engineering space.

Titan shares fell 4.24% to Rs 222.25 on the Bombay Stock Exchange on a day the benchmark Sensex declined 0.54% to 17,236.18 points.