Shares of Titan Company Limited, the famed jewellery and watchmaker, surged almost 6 per cent to hit an intraday high of Rs 2,745 on Friday on BSE in an otherwise subdued session, after it reported strong September quarter sales numbers. Surprising the investors in early trade, Titan’s shares were seen trading nearly 5.18 per cent higher around 10 am.
In a regulatory filing, Titan reported strong double-digit growth in almost all businesses. The company reported that its overall sales rose 18 per cent year-on-year (YoY).
“The Company witnessed healthy double-digit growth across most businesses with overall sales growing 18% YoY. Retail network continued the pace of expansion adding 105 stores (net) for the quarter. The outlook for festive season (from Navratri in end Sep'22) continues to be optimistic and is visible in positive consumer sentiment across categories,” the Bangalore-based company said.
While the company is reportedly banking its short-term future on the on-going festive season, it has also managed to witness contributions from high value purchases, especially in the jewellery division. As per the regulatory filing, while the jewellery division of the company grew 18 per cent YoY, the watches and wearables division grew 20 per cent annually, also marking the latter’s highest quarterly revenue.
Explaining about its growth patterns of the jewellery division, the company said, “Gold jewellery (plain) clocked low double-digit growth whereas studded sales were higher than the overall division driven by good activations and better contribution from high value purchases. The product-mix improved compared to last year but continued to be below pre-pandemic levels.”
Titan’s eyecare division, though relatively old in the game, witnessed some mixed trends. While the sales from Titan Eye+ stores witnessed double digit growth, it was the annual sales across Trade and Distribution that took a hit, leading to an overall 7 per cent annual growth for the eyecare division.
In addition to these figures and a positive early trade outlook, Titan mentioned that its store addition pace was optimum and relatively strong. The maximum additions were made to the eyecare business i.e., 38 stores and this was followed by watches and wearables and jewellery stores at 23 and 25 respectively.
As of 11:53 am, Titan shares were trading 5 per cent higher at Rs 2,724, outperforming the Nifty which was down 0.4 per cent. The stock was top gainer in the Nifty 50 basket of shares.
