Titan registers strong recovery in demand in Q2 FY22

Tata group firm Titan on Wednesday said it has witnessed a strong recovery in demand in the July-September quarter, and its sales in most of its divisions have either reached above or close to pre-pandemic levels.

Most stores are now fully operational barring a few in select towns, having localised restrictions, with overall store operation days exceeding 90 per cent for the quarter, said Titan in its quarterly updates.

Apart from its thrust on the digital channel, Titan has accelerated its retail network expansion during the quarter.

"The company witnessed strong recovery in demand after the second wave across its consumer businesses with sales moving swiftly above or close to pre-pandemic levels in most of the divisions," said Titan.

In terms of revenue, in the jewellery segment, which contributes a larger portion of its turnover, it has reported 78 per cent growth in Q2 FY22 compared to Q2 FY21.

"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, much stronger growth in the plain segment led to studded mix being below pre-pandemic levels," said Titan.

According to Titan, now digital gold is a new pilot offering that helps customers purchase gold online and lock in the gold prices with an ability to convert it into jewellery at a later stage.

"The early response has been good with the enrolment of many digitally-savvy young customers. The Golden Harvest Scheme (GHS) enrollments have surpassed the pre-pandemic levels," it said.

In watches and wearables, its revenue was up 73 per cent compared to the July-September quarter of the previous fiscal.

"The division recovered rapidly in Q2 with sales acceleration witnessed across all product brands. The e-commerce sales also continued its growth momentum," the company said.

Walk-ins continue to slowly improve with malls and large format stores at 65 per cent and 70 per cent of pre-pandemic levels, respectively.

"Tier-2 cities are witnessing better recovery in walk-ins compared to metros," it said.

In Eyewear, Tita's Q2 FY22 revenue was up 74 per cent. It added 24 new stores in the quarter.

Its other business segment, which includes - Taneira, Fragrances and Accessories, reported 121 per growth during the quarter.