Titan keeps jewellery growth shining in Q2

Titan Co. Ltd’s shares are hovering around their 52-week highs. The jewellery segment has been comparatively resilient, aiding the sentiment for the stock. The company’s latest pre-quarterly numbers show that it has managed to beat the general sluggishness in discretionary demand to a good extent.

- Harsha Jethmalani

Titan’s mainstay jewellery business revenue (excluding bullion sales) clocked 19% year-on-year revenue growth in the September quarter (Q2FY24), according to the company’s provisional business update. This compares with 19% growth seen in the June quarter and 24% in the March quarter. In short, Titan’s delivery has been consistent in the jewellery business, which formed over 85% of overall revenues in FY23.

Last quarter, the company saw double-digit growth in buyers and ticket sizes. Further, Q2 jewellery growth got a fillip on the back of activation (promotions) for studded jewellery, new collection launches, robust Golden Harvest scheme sales, a healthy wedding season and high-value studded jewellery purchases. Meanwhile, growth in the comparatively smaller watch business was faster at 32%. Thus, Titan expects overall standalone revenue growth of 20% year-on-year in Q2FY24.