Shares of Titan Company Limited rose as much as 5.65 per cent to hit an intraday high of Rs 1,267.80 after the company informed stock exchanges of sharp recovery in September quarter across its business verticals following subsequent reopening of economy from the lockdowns announced to stop the spread of coronavirus disease. Titan told exchanges that “the company’s return to normalcy on the business front has been progressing well with the almost complete lifting of restrictions in phased manner over last few months across the country.”
Titan’s jewellery division saw a strong recovery as its division did very well in Q2, with a recovery rate of around 98 per cent (excluding sale of raw gold) in Q2, compared to the revenue of same quarter in last year. The walk-ins have been improving with conversion rates and average ticket size being higher compared to same period of last year, the Bangalore-based jewellery and watch retailer said in a statement.
“The recovery rate in metros that have got impacted the most by the pandemic has been improving gradually. Non-metros seem to have recovered substantially and many cities have actually recorded growth compared to last year. Sales in September have been decent, despite the inauspicious period of ‘Shradh’. The festival season will commence about 15 days later in the current year,” Titan said.
The company sold excess gold from its inventory and the quarter had a sale of Rs 390 crore of raw gold, Titan added.
“Watches & wearables division had a recovery rate of around 55 per cent in Q2, compared to the revenue of same quarter in last year, with a recovery of 70 per cent in the September month. E-commerce is leading the recovery with absolute growth but the trade channel continues to pose challenges primarily due to destocking,” Titan added.
The recovery rate for the business has been steadily increasing month on month driven by primarily by increasing walk-ins to the stores. The conversion rate and ticket size (led by high-value customers) has been tracking higher compared to pre-Covid levels.
Eye Wear division had recovery of 58 per cent in Q2, compared to the revenue of same quarter in last year, with a recovery of 70 per cent in September.
As of 12:26 pm, Titan stock traded 4.91 per cent higher at Rs 1,258.50 on the BSE, outperforming the Sensex which was up 0.70 per cent.