Titan Q4 Results

Muted demand for high-value studded products a major concern

Growth in the segment, which accounts for over 80 per cent of the consolidated sales, was robust in January and February, thus leading to a 16.5 per cent growth in revenues.

Jewellery division revenue dips 5%; watches division sees flat growth

The March quarter results of Titan Company (Titan) show that the company has bounced back strongly from demonetisation blues. This was reflected in the strong year-on-year growth of 43 per cent in net revenue to Rs 3,430 crore for the March quarter (Q4). The number was much ahead of Bloomberg consensus estimate of Rs 3,218 crore and was driven by healthy growth in the jewellery business (83 per cent of overall revenues). Interestingly, grammage (volume) growth of 37 per cent in Q4 was the highest growth in the past 10 quarters and was partly driven by a strong wedding season. Increasing shift of consumers towards organised players (pushing up the new customer acquisition rate) and healthy momentum in the golden harvest scheme were other factors driving jewellery sales in Q4. Watches division, too, witnessed a good growth of 10 per cent (highest since Q2'FY15) on the back of domestic demand.Titan's EBITDA margin, however was pulled down due to a host of factors. Stronger growth by the .