Titan stock edged up as high as 5 per cent in the Wednesday trading session after the company reported an 18 per cent year-on-year rise in domestic sales for the second quarter.
Titan stock traded at Rs 3,574 with 4.56 per cent gain in the morning session on the National Stock Exchange (NSE).
However, the sales marked a slowdown from the 25 per cent growth recorded a year earlier, as surging gold prices curbed demand for higher-carat jewellery.
The jewellery division, which contributes nearly 90 per cent of the Bengaluru-based company’s total revenue, grew 19 per cent year-on-year in the quarter ended 30 September, Titan said in its business update.
Global uncertainty pushed spot gold prices up 16.4 per cent during the period, prompting investors to turn to the safe-haven asset.
The company noted a slight decline in customer footfall, though average ticket sizes increased as fewer buyers opted for more expensive pieces.
Sales of studded jewellery under Titan’s Tanishq, Mia and Zoya brands rose in the mid-teens, outpacing growth in plain gold jewellery.
Meanwhile, investment-grade gold coins continued their strong performance as consumers turned to bullion as a store of value, a trend that has pressured profit margins, given coins’ lower profitability compared with jewellery.
Titan’s watches division, its second-largest business, reported 12 per cent sales growth, led by a 17 per cent rise in the analogue segment.
The company’s international business surged 86 per cent year-on-year, driven by Tanishq more than doubling its US operations, underscoring Titan’s expanding global footprint. |
