Titan sees better recovery than expected on the back of jewellery sales

After suffering a complete erosion of sales in April due to Covid-19 lockdown, recovery for Titan has been better than originally foreseen on the back of higher share of wedding jewellery sales, good sales coming from GHS scheme, and investment-led demand leading to higher gold coin sales, said the company in a BSE filing on Tuesday.

So far, Titan has re-opened around 83 per cent of its stores across all businesses while the jewellery division has re-opened around 95 per cent of its Tanishq stores till date. 

“Revenue in May and June months were at slightly below 20 per cent and around 70 per cent compared to the corresponding months of the previous year. The division also sold gold in the bullion market worth Rs 610 crore at market rates to optimise the inventory levels,” said the Bengaluru-headquartered company.

During the quarter, the division added 6 Tanishq stores and one Mia store, which were stores where work was in progress at the end of March. 

The watches and wearables segment was in the slow lane with revenue in May and June at 5 per cent and marginally over 20 per cent compared to the corresponding months of the previous year.  The company closed 15 stores during the quarter in the eyewear segment.

Almost all manufacturing facilities have commenced operations. “However, production levels are low now, given the inventory situation and will be ramped up only gradually when the company sees sales picking up to normal levels,” said Titan.