Titan Q4 update: Jewellery business revenue declines 4%

Titan Company Ltd on Wednesday said it finished the January-March quarter of fiscal year 2021-22 on a satisfactory note despite disruptions. However, its jewellery business reported a 4 per cent year-on-year (YoY) decline in revenue during the quarter.
 
The month of January saw disruption due to the partial lockdowns caused by Omicron wave, Titan informed stock exchanges in its quarterly update. Besides, March month also witnessed disruption as consumer sentiments got affected adversely due to a sharp increase and volatility in gold prices, and uncertainty due to a fragile gee-political situation. 
 
"The underlying demand continued to be strong across all of its businesses with most segments posting YoY growth over a very strong Q4 FY21 base. The network expansion and campaigns have continued to progress well in anticipation of an upbeat Q1 FY23 which is expected to be normal after a gap of two years of lockdowns in the same period," the filing said.
 
Titan said the jewellery business ended the volatile quarter on a flat note over a strong Q4 FY21 base. "Business saw subdued activity in top cities due to the Omicron wave in Jan'22, a very strong resurgence in Feb'22 and again a drop in customer purchases in Mar'22."
 
While walk-ins saw minor decline, the customer conversions and ticket sizes grew marginally for the quarter compared to the same period last year. Sales from top 8 cities grew in single digits, while the rest of India saw a small decline.
 
"Though the plain jewellery category bore the brunt of gold volatility in Mar'22 leading to a slight decline for the quarter, studded sales clocked in a high single digit growth, thereby partially cushioning the impact. Golden Harvest enrolments witnessed double digit growth rates. Store expansions (net) continued as per plan with commissioning of 7 new stores in Tanishq, 8 in Mia by Tanishq and 1 in Zoya," the filing said.
 
The watches and wearables division saw good growth momentum amidst a challenging external environment with sales increasing across all offline channels, it said. The segment's revenue grew 12 per cent YoY.
 
Meanwhile, the eyecare division recorded 5 per cent YoY growth, while other businesses saw 23 per cent rise in revenue. On a standalone basis, Titan's revenue declined 3 per cent during the quarter.
 
Shares of Titan on Wednesday ended 0.26 per cent lower at Rs 2,541.25 on the BSE.

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