Titan gains 3%, hits new high post December quarter business update

Shares of Titan Company hit a new high of Rs 1,621, up 3 per cent, on the BSE on Wednesday after the company said its jewellery division has crossed the recovery phase to growth phase and other two large divisions have also moved much closer to the full recovery.

The company’s jewellery business reported a healthy 15 per cent year on year growth in sales during the October-December quarter (Q3FY21), due to festive season along with pent-up demand for wedding jewellery.

“The Company already announced the 15 per cent growth in the 30-day festive period from Dussera to Diwali. Fortunately, the growth trend was visible even after the festive season ended and the division has recorded close to 15 per cent growth (excluding sale of raw gold of-Rs 334 crore) in 03,” Titan Company said in Q3FY21 quarterly update.

The jewellery industry saw resurgence in the festive season along with a pent up demand for wedding jewellery as most of the weddings in H 1'21 were deferred, it said.

The studded mix in Q3 improved although it was still lower than the levels seen in the previous year. The division continued to see a significantly higher share of gold coin sales and very good growth in wedding jewellery sales. Ticket size continues to be higher due to higher gold rates and higher share of wedding related products but 100 per cent recovery in buyers (number of invoices) is yet to be seen, the company said.

In the past three months, Titan Company has outperformed the market by surging 35 per cent, against 22 per cent rise in the S&P BSE Sensex. At 09:34 am, the stock was trading 2 per cent higher at Rs 1,602 on the BSE, as compared to 0.07 per cent rise in the benchmark index. A combined 960,000 equity shares had changed hands on the counter on the NSE and BSE.