Titan falls 3% on low revenue from jewellery business

Shares of Titan Company fell 3 per cent on Wednesday after the firm reported a decline in revenues in jewellery business in second quarter of 2019-20.

The company said its revenue from jewellery business declined 2 per cent in September quarter despite 7 per cent growth in retail sales.

"Retail sales (secondary sales) grew 7 per cent in Q2 FY'20 but revenues as per financials declined 2 per cent year-on-year in Q2FY'20 substantially due to adverse impact of the hedges matured during the quarter," the company said in a BSE filing on Monday.


The jewellery business saw a sharp fall in sales from mid-June on the back of surge in gold prices. The trend continued in July and resulted in considerable de-growth in sales during the month, it added.

However, the company saw a retail growth of 15 per cent year-on-year between August and September as compared to the same period of 2018-19.

A report by Edelweiss Financial Securities said it expects second quarter to be 'soft' for Titan with an year-on-year growth of about 6.9 per cent. Also, for the jewellery business, the growth is expected to be around 6 per cent year-on-year.

"We expect Q2 to be soft for Titan with almost 6.9 per cent year-on-year revenue growth. For jewellery business, we expect the segment to record about 6 per cent year-on-year growth on a base of 28.5 per cent," Edelweiss Financial Securities said.

The shares of the company closed 2.41 per cent lower at Rs 1229.05 on BSE.