Titan anticipates stronger gold jewellery demand in H2FY25

livemint.com:

NEW DELHI : Rising gold prices and a series of other factors are set to challenge India's gold jewellery market in the first quarter of the current fiscal year. Demand for the precious metal is expected to be subdued due to price volatility, fewer auspicious wedding dates, and the backdrop of elections in the world's largest democracy. Despite these headwinds, Tata-backed Titan Company Ltd, which houses one of India's top jewellery brands, Tanishq, remains optimistic about the latter half of the year.

“The way this year will play out is that the second half will be much better than the first half," said aid Ajoy Chawla, chief executive, jewellery division, Titan Company on the sidelines of a retail event in Mumbai. "Quarter one is likely to be a little bit more stressed because of the absence of wedding dates and presence of elections, and add to the mix, elevated gold prices," Chawla said. Gold prices surged around 8% in Q4, continuing their upward trend in April by breaching the ₹70,000 per 10gm mark for the first time.

Last week, Titan, known for its watch and jewellery segments, reported a 19% revenue growth in its jewellery business. However, jewellery Ebit (earnings before interest and taxes margin) fell to 12.1%, attributed to weak consumer sentiment and increased competition amid rising gold prices. Despite the margin pressure anticipated to continue into the first half of the current fiscal year, Titan has retained its FY25 jewellery margin guidance at 12-13%, according to analysts at BNP Paribas in a report released on 6 May.