Titan Company in its third quarter update issued on Wednesday said that 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 data showed that the company recorded a 15 per cent growth in the third quarter of FY 2020-21.
Post the announcement, Titan’s shares rose to a high of Rs 1,620.95. At 1.10 p.m. it was trading at 0.87 per cent higher at Rs 1,582.40.
In a regulatory filing, “the jewellery industry saw a 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.”
“The jewellery division has crossed the recovery phase to growth phase and other two large divisions have also moved much closer to the full recovery,” it said.
“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 cr) in Q3.”
It further added that the quarter the “quarter also witnessed a well-rounded recovery with improvement in walk-ins and pick up of sale in metros, sub 1-lakh category and studded segment. The studded mix in Q3 improved, though still lower than 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 is yet to be seen.”
On the watches and wearables division, the company said that the segment had a recovery rate of around 88 per cent in Q3, compared to the revenue of the same quarter in last year.
“The e-commerce channel is leading the recovery with very strong absolute growth of over 30 per cent,” it said.