Titan gains 3% as Q3 jewellery retail sales meet expectations

The stock was up 3% to Rs 869 on the National Stock Exchange in intra-day trade so far

Titan Company was up 3% to Rs 869 on the National Stock Exchange (NSE) in intra-day trade so far after the company said jewellery retail sales in October-December quarter (Q3FY18) has been healthy and in line with internal management expectations, despite Dussera being celebrated in the previous quarter.

But primary growth in the quarter was lower due to a higher franchisee billing of about Rs 250 crore that happened towards the end of the previous quarter, Titan Company said in a regulatory filing.

Traditionally, September-December quarter yields the largest revenue for Titan since both Dussera and Diwali festive season falls almost entirely in this quarter every year. The festive season did not disappoint this year either, it added.

The watches business also benefited from a regulatory change during the period, with the government lowering the goods and service tax (GST) rate on the category to 18% from 28%. The government also reduced the GST rate on sunglasses to 12% from 18% during the quarter and Titan’s watch and eye wear divisions have corrected prices accordingly, the company said.

At 10:00 AM; Titan Company was trading 2.3% higher at Rs 865 on NSE, as compared to 0.55% rise in the Nifty 50 index at 10,499 points.  The stock hit a 52-week high of Rs 872 on December 20, 2017 in intra-day trade. A combined 849,386 shares changed hands on the counter on the NSE and BSE so far.