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Titan Company reports strong recovery in demand in Q2

The company in its quarterly update for the second quarter said its consumer businesses were swiftly moving above or close to pre-pandemic levels in most of the divisions.

October 06, 2021 / 07:08 PM IST
A Tanishq store.

A Tanishq store.


Titan Company has reported a strong recovery across its divisions of jewellery, eyewear, watches, and wearables in the second quarter of the financial year 2022.

In a quarterly update, the company said most of its divisions have either crossed or are swiftly moving to reach the pre-pandemic levels. It also informed that most of its stores are fully operational except a few in some towns which have imposed localised restrictions, with overall store operation days exceeding 90 percent for the quarter.

The company witnessed a 78 percent year-on-year (YoY) growth in the jewellery segment in Q2, while watches and wearables grew 73 percent; eyewear clocked 74 percent growth and its online jewellery platform grew 95 percent YoY.

Titan Company registered a 78 percent growth overall in its revenue on a standalone basis in Q2.

“The demand postponement triggered by the second wave of the pandemic in avenues like gift purchases, occasions/milestone buying, weddings, investments in gold etc. witnessed a strong comeback in Q2. Both plain and studded segments grew in double digits, however a much stronger growth in the plain segment led to studded mix being below pre-pandemic levels,” it said in the quarterly update.

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The company launched 13 new stores under Tanishq in the quarter taking the total store count to 414. It rolled out its digital gold scheme during the quarter, which helps customers purchase gold online and lock in the gold prices with the ability to convert it into jewellery at a later stage. The company reported that the response has been good for the offering with the enrolment of many digitally savvy young customers.

It also introduced two CaratLane stores and now has 123 stores under the brand.

Titan Company’s watches and wearables division recovered rapidly in Q2 with sales acceleration witnessed across all product brands, the company informed.

“The e-commerce sales also continued its growth momentum. Walk-ins continue to slowly improve with malls and large format stores at 65 percent and 70 percent of pre-pandemic levels, respectively. Tier-II cities are witnessing better recovery in walk-ins compared to metros,” it said.

Similarly, the company registered healthy growth in eyewear, fragrances, ethnic retail and accessories businesses. The company also added 24 new stores under its eyewear category and 8 new stores under the watches and wearables category in Q2.

“All 14 stores of 'Taneira' re-opened post lockdown and were operational for about 80 percent of the total available store days during the quarter, on an average,” it said.

Titan Company had reported a consolidated profit of Rs 18 crore for the June quarter as compared to a net loss of Rs 297 crore in the corresponding period of last fiscal.  Total income during the quarter under review stood at Rs 3,519 crore, as opposed to Rs 2,020 crore in Q1 FY21.
Moneycontrol News
first published: Oct 6, 2021 07:08 pm

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