Titan trades down despite 20% revenue growth, 81 store launches in Q2

Shares of Titan Company Limited traded nearly 2 percent lower at Rs 3,2350 in early trade on October 9, snapping its two-day gaining streak, after it announced a 20 percent jump in revenue for the second quarter ended September 30.

The watchmaker also announced that it has opened 81 stores during this period, taking the total presence of the company to 2,859 outlets.

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In the jewellery segment, revenue growth was led by a 20 percent growth in the domestic business and lower primary outgo from India to the international entities (driven by periodic inventory realignment).

“Building on the positive Q1 momentum, domestic consumer sales (secondary) exhibited strong on-year growth and were led by double-digit growths in buyers and ticket sizes”, the company said in an exchange filing on October 6.

The jewellery division saw 37 store additions in India in this quarterly period, out of which, 10 were of Tanishq, 26 of Mia by Tanishq and one of Zoya.

In the watches and wearables segment, the company said that business grew 32 percent on-year comprising 22 percent growth in analog watches and 131 percent growth in wearables. “Analog watches growth was powered by healthy consumer sales in the mid to premium watches segment,” Titan said.

As many as 20 stores were added in the quarter in the segment consisting of 10 of Titan World, five each of Helios and Fastrack.

The eyecare division witnessed sales growth of 12 percent over last year. The segment added four Titan Eye+ and one Fastrack store in the domestic market during the quarter.

In the last six months, Titan shares have gained 28 percent.

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