Titan Hits 52-Week High As Its Jewellery Business Re-Enters Growth Phase In Q3

On Wednesday, shares of Titan Company rose 3.3% to hit a new all-time high of Rs 1,620.95 after the company provided a business update for the December-ended quarter.

In a stock exchange filing, the company said that "Q3 did not disappoint".

"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 in a BSE filing.

Titan said that 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 the first half of FY21 were deferred.

"The Company already announced the 15% growth in the 30-day festive period from Dussera to Diwali. Fortunately, the growth trend was visible even after the festive season ended and the division has recorded close to 15% growth (excluding the sale of raw gold of Rs 334 crore.) in Q3," it said.

The December-ended 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 company said adding that the studded mix in Q3 improved though still lower than levels seen in the previous year.

It jewellery division, that runs that Tanishq website and stores, continued to see a significantly higher share of gold coin sales in the December quarter 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% recovery in buyers (number of invoices) is yet to be seen," it added.