A sharp decline in gold prices during the January-March quarter has further aided the consumer demand for the Jewellery segment that witnessed strong sales momentum.
Titan share price jumped on Wednesday to hit a high of Rs 1,561 per share after the company informed stock exchanged that it continued to witness strong growth in the previous quarter. Titan said that business was firm as consumer sentiment strengthened and the impact of the coronavirus pandemic continued to fade away. The share price was up 2% earlier in the day before witnessing some profit booking and scaling down from highs. Titan is often touted as ace investors Rakesh Jhunjhunwala’s favourite stock. The ace investors, along with his wife owns a 5.32% stake in the company.
Helped by the low base of March 2020, Titan’s revenue growth was recorded at 60% on-year basis. “The company continued to witness strong business momentum as the COVID impact on the consumer sentiments seemed to fade in the early part of the quarter. After recording the best ever revenue in Q3, which was a festive season, the company again recorded very strong revenues in Q4,” the quarterly update said.
A sharp decline in gold prices during the January-March quarter has further aided the consumer demand for the Jewellery segment that witnessed strong sales momentum. Titan further said that Business to Business (B2B) orders made up 10% of the quarter’s growth. Overall revenue growth was 70% on-year basis. Demand was strong from metro as well as non-metro towns. Strong business momentum enabled the company to add 26 new Tanishq stores in the previous fiscal year.
Titan’s watches and wearables division had a recovery rate of nearly 90% for the first two months of the quarter and had flat reported revenue in the quarter under review compared to last year. The Eye wear division of Titan saw revenue growth of 20% in the March quarter.
Global business was also recovering along with the domestic segments as its Dubai Boutique exceeded the internal expectations. After a year of salary cuts, the salary of Titan’s senior management was fully reinstated in the last quarter.
Rakesh Jhunjhunwala owns 3.75 crore equity shares of Titan Company Ltd while his wife Rekha Jhunjhunwala owns 96.6 lakh shares, according to the stock exchange website. At today’s high of Rs 1,561 per share, the value of the stake owned by the Jhunjhuwnala’s stood at Rs 7,363 crore.