Titan plunges 12% as firm raises red flags on Q1 growth

NEW DELHI: Shares of watch and jewellery maker Titan slipped 12 per cent in trade on Tuesday after the company said its consumption during April-June took a hit due to rising gold prices.

The scrip was on course to extend its slide into the fourth consecutive session.

Titan in its quarterly update on Monday said it witnessed a tough macro-economic environment with consumption being hit during April-June quarter due to rising gold prices.


"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," the firm said in an exchange filing.

Revenue in the jewellery division (Tanishq) saw a muted 13 per cent growth in the first quarter as a sharp increase in gold prices dented consumer demand significantly.

However, the watch division, which retails watches under a range of brands including the premium Titan and the economy brand Sonata, saw revenue growth of 19 per cent, partly helped by a large institutional order from Tata Consultancy Services (TCS), a group company.

The eyewear segment grew 13 per cent, aided by semi-annual activation that covered both Titan and Fastrack brands.

Recently Morgan Stanley downgraded the stock to the equal-weight from overweight, with a target at Rs 1,300.

Shares of Titan Company closed 12.26 per cent down at Rs 1,099.10 on BSE.