Titan shares rally over 3% to fresh record high. What's behind the glitter?
Titan on Friday rallied up to 3.4% to hit a fresh 52-week high of Rs 3,211 on BSE as investors welcomed the June quarter business update shared by the company. In a regulatory filing, after market hours on Thursday, Titan said it recorded revenue growth of 20% year-on-year (YoY) for Q1 with all key consumer businesses exhibiting double-digit growth in the June quarter. Titan's mainstay jewellery business impressed with a growth of 21% YoY as it added a total of 18 stores last quarter to take its total store count to 559.
«Buyer growth was higher than average ticket size growth for this period. Despite significant volatility in gold prices throughout the quarter, Akshaya Tritiya sales in April and wedding purchases in June were robust. The key categories of gold and studded grew well with no notable change in the overall product mix.
New store additions, golden harvest and exchange programs continued to do well during the quarter,» Titan CFO Ashok Sonthalia said. Tanishq added a new store in Sharjah, thereby expanding its international presence to seven stores in the Gulf region and one store in the USA. The domestic new store additions consisted of nine stores in Tanishq and eight stores in Mia by Tanishq.
Titan's watches & wearables division's 13% YoY growth consisted of 8% growth in analog watches segment and 84% YoY growth in wearables. «Brand Titan and international brands saw strong buying momentum clocking handsome double-digit growths. Consumer preferences for premium brands resulted in a good uptick in the average selling price for watches,» the company said.
Read more on economictimes.indiatimes.com
