Titan Company on Wednesday said it continued to witness strong business momentum as the impact of COVID on consumer sentiments seemed to fade in the early part of the January-March quarter.
The company recorded strong revenue growth of 60 percent for the overall March quarter due to the low base of March 2020, with revenue growth of over 36 percent in the comparable January and February months.
"The company continued to witness strong business momentum as the COVID impact on the consumer sentiments seemed to fade in the early part of the quarter. After recording the best ever revenue in Q3, which was a festive season, the company again recorded very strong revenues in Q4,” Titan said in its quarterly update.
While the jewellery division has emerged very strongly from the crisis and witnessed strong growth in the quarter, the watches and wearables and the eyewear divisions also made very good progress on recovery.
Titan’s jewellery division continued to see strong sales momentum in the March quarter, reflecting the strong market share gains, as per the update. Sharp decline in gold prices during the quarter also gave impetus to the consumer demand for the industry. The fourth quarter of the last fiscal also had a large B2B (Business to Business) order, contributing to about 10 per cent of the quarter’s growth, the company said.
According to the company, reported revenue growth for jewellery division for the quarter was 70 percent due to the low base of March month in the previous year. Despite 70 percent loss in retail sales in the first quarter of the last fiscal due to lockdowns, Titan said the jewellery division has exceeded the retail sales of the previous year on a full-year basis.
The company’s watches and wearables division had a recovery rate of close to 90 percent for the first two months of the quarter and had flat reported revenue in Q4 compared to last year. Eyewear division’s revenue grew 20 percent in the March quarter with the growth in the first two months being 4 percent.
Titan said other businesses had a revenue recovery of around 80 percent in the March quarter compared to the same quarter last year. Fragrances sales also recovered 80 percent. CaratLane, which is 72.3 percent owned by Titan, delivered a growth of 60 percent for the quarter continuing its strong growth trajectory.
For the international business division, the performance of its Dubai Boutique exceeded the internal expectations and all the retail metrics are quite healthy, the company said. The division is now planning to open another store in GCC.
Titan also said that in light of the better than expected recovery, the company has fully reinstated the cash component of the salary cuts of mid-to-senior employees undertaken in May 2020 with retrospective effect.