Consumer sentiment as well as demand scenario have recovered "quite significantly" in the January-March quarter, says Tata group firm Titan.
Consumer sentiment as well as demand scenario have recovered “quite significantly” in the January-March quarter, says Tata group firm Titan. The company has witnessed sales traction during the period across all divisions, including jewellery, watches and eyewear, and is expecting a good year ahead. “Consumer sentiment as well as demand scenario recovered quite significantly (post demonetisation) by the beginning of the fourth quarter of 2016-17 and sales were good for all divisions by varying degrees,” the company said in a regulatory filing. Control on costs along with strong growth in top line and gross margins will “enable the company to show a very good growth in bottom line for the quarter and consequently for the year as well”.
Titan, which sells jewellery under the Tanishq brand, reported a strong quarter aided by studded jewellery. “The division has achieved a new milestone in terms of sales as well as profit. The division had a favourable base this quarter as in the last financial year,” it added. In January-March, its jewellery division added 16 new Tanishq stores.
The watch division also hit a home run during the quarter on the back of “good sales growth in the domestic watches and spares sales” and added new collections under its various brands. Its eyewear unit had a “turnaround in sales” in the last quarter on account of a revival in sales of the sunglass business. The prescription eyewear business experienced retail growth in excess of 10 per cent.
However, in 2016-17, the company closed down 12 Spexx stores, its eyewear retail format. The division added 59 Titan Eye Plus stores during the fiscal. According to Titan, 2016-17 was an “exceptional year for the company on many fronts” although it struggled for growth in the first half due to uncertain consumer sentiment and impact of the jewellery industry strike. “The second half of the year, however, exceeded expectations on all counts despite the serious regulatory impact in the form of demonetisation,” it said.