Watches and jewellery seller Titan reported muted sales for the quarter ending September as sluggish demand claimed a victim in the company.
Watches and jewellery seller Titan reported muted sales for the quarter ending September as sluggish demand claimed a victim in the company. However, Titan, which is into several other allied businesses such as perfumes and sarees as well, said that the company was aware of the situation beforehand. “We knew right through the quarter that the industry demand was under severe pressure. While we wish things could have been better, we are quite satisfied with what we did,” CK Venkataraman, MD, Titan, told ET Now in an interview. Titan’s jewellery business was especially hit owing to skyrocketing gold prices. “The Jewellery business had a subdued quarter on the back of very high gold prices, recording an income of Rs 3,528 crore as compared to Rs 3,582 crore last year,” Titan said in a statement. Further, downbeat consumer demand also led to slow sales.
Titan’s other businesses, including the watch business, mopped up the income of Rs 719 crore. The company had made Rs 676 crore in the previous year in the same segment. This equals to a yearly growth of single-digit 6.4%.
The jewellery business continued to gain market share and registered a growth of 5.9% in revenue for the first half of this year, while on the other hand, the watches business grew at a double-digit 12.9%, Titan added. However, one of the largest strides was seen in Titan’s eyewear business, which recorded a 28.5% growth in the quarter ending September, witnessing a jump in income at Rs 154 crore as against Rs 120 crore in the comparable period last year. Fragrances and Indian dress wear segment also recorded a spike with a 33.2% increase in Q2 recording an income of Rs 44 crore. Titan’s previous year income for the same segment stood at Rs 33 crore last year.
Titan has about 1,668 stores retail stores in India, as of September 30. The retail area covered by the company crosses 2.1 million sq ft.