Titan Company was down 13% to Rs 1089.75 at 10:12 IST on the BSE after the company said it witnessed a tough macro-economic environment in April-June quarter with consumption being hit.
The announcement was made after market hours yesterday, 8 July 2019.
Meanwhile, the S&P BSE Sensex was down by 235.50 points, or 0.61% to 38,485.07.
On the BSE, 2.92 lakh shares were traded in the counter so far compared with average daily volumes of 90,000 shares in the past two weeks. The stock had hit a high of Rs 1175.55 and a low of Rs 1088.05 so far during the day. It hit a 52-week high of Rs 1340.75 on 1 July 2019 and a 52-week low of Rs 731.70 on 9 October 2018.
The company said very high gold prices particularly in June also impacted growth in the jewellery industry. Against this background, the company's growth particularly in the jewellery segment was lower than planned even though the gains in market share were sustained.
In the jewellery business, revenue grew by a muted 13% in Q1 as sharp increase in gold prices dented consumer demand significantly in the month of June, Titan said.
For its watch business, Titan said the division continued with good sales momentum with revenue growth of 19%, partly aided by execution of a large institutional order from Tata Consultancy Services (TCS). Tech-enabled wearable has been the new driver for the division, it added. During the quarter, Titan's watch division launched a new segment of mechanical watches, which takes back time pieces to an era of hand craftsmanship and precision.
The eyewear division witnessed revenue growth of 13%, aided by the activation during the quarter, Titan added.
Among the new businesses of Titan Company, Skinn continues to increase its distribution reach and witnessed good growth during the quarter, with focus on small packs and E-commerce channels to further boost growth.
A foreign brokerage reportedly downgraded the stock to neutral from outperform with a target price at Rs 1,250, implying flat growth from current levels. The research house further said it would look for a better entry point. It cut earnings estimates by 2%. The brokerage feels stretched valuations and near-term softness cap upside.
On a consolidated basis, Titan Company's net profit rose 10.8% to Rs 353.59 crore on a 18.8% rise in the net sales to Rs 4823.49 crore in Q4 March 2019 over Q4 March 2018.
Titan Company makes watches, jewellery, eyewear and perfumes.
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