The share price of Titan surged over 4 percent on Thursday after the company, in a business update, said that it saw good traction across all its segments during the festive season.
“The jewellery business witnessed a mid-teens growth (around 15 percent) for the 30-day festive season starting from Dussehra till Diwali over the corresponding period last year, with a decent recovery in studded jewellery sales,” Titan said in the business update.
The watches and wearables business also did quite well in the festive season with recovery close to last year's levels. Eyewear business has also witnessed good traction, it further added.
The stock rose as much as 4.4 percent to Rs 1,336.25 per share on the BSE. It was trading close to its 52-week high of Rs 1,340.60, hit on February 20, 2020. The stock has gone up over 8 percent in the last 1 month and 12 percent on a year-to-date basis.
In an interview with CNBC-TV18, S Subramaniam, CFO of Titan, said that sales were returning to normalcy and that the company logged 15 percent growth in sales this festive season versus last festive season. "We will grow in the jewellery business in Q3. Watches and eyewear business catching up, gold coin sales are returning to normalcy."
For the second quarter, Titan Company's standalone net profit in the second quarter of fiscal 2021 fell 37.8 percent to Rs 199 crore from Rs 320 crore in the same period last fiscal. Standalone revenue also declined 2.6 percent to Rs 4,318 crore from Rs 4,435 crore, YoY.
The company's Jewellery business revenue reported a growth of 8.8 percent at Rs 3,837 crore as against Rs 3,528 crore. CNBC-TV18 poll had estimated revenue decline of 2 percent. Meanwhile, the watch division reported a loss of Rs 4 crore for the quarter as compared to EBIT of Rs 113 crore, YoY.