Titan says jewellery division has crossed the ‘recovery phase to growth phase’ – Mint

Titan shares today hit a new high of ₹1,620 on BSE when prices rose about 3%. Titan shares have surged 35% in past one quarter with investors betting on demand recovery amid optimism over covid vaccines.

“The company had been expecting a good festive season given the fact that there were signs that customers wanted to feel good by stepping out and shopping after 6 months of being restricted primarily to their homes. Q3 did not disappoint,” Titan said in communication to the BSE today.

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“The jewellery industry saw a resurgence in the festive season along with a pent up demand for wedding jewellery as most of the weddings in H1 of FY21 were deferred. The company already announced the 15% growth in the 30-day festive period from Dussera to Diwali. Fortunately, the growth trend was visible even after the festive season ended and the division has recorded close to 15% growth (excluding sale of raw gold of ₹334 crore) in Q3. The quarter also witnessed a well-rounded recovery with improvement in walk-ins and pick up of sale in metros, sub 1-lakh category and studded segment,” Titan said.

“The division continued to see a significantly higher share of gold coin sales and very good growth in wedding jewellery sales. Ticket size continues to be higher due to higher gold rates and higher share of wedding related products but 100% recovery in buyers (number of invoices) is yet to be seen,” it said.

The watches and and wearables division had a recovery rate of around 88% in Q3, compared to the revenue of the same quarter in last year, Titan said, adding that the e-commerce channel is leading the recovery with very strong absolute growth of over 30%.

The eye wear division had a recovery of about 92% in Q3, compared to the revenue of the same quarter in last year, the Tata group company said.