Shares of Titan Company fell over 2 per cent on Wednesday after the firm reported a decline in revenue from jewellery business in the second quarter of 2019-20.
On the BSE, the stock plunged 2.41 per cent to Rs 1,229.05, while it fell 2.27 per cent to Rs 1,230.40 on the NSE.
The company's market capitalisation fell Rs 2,689.64 crore to Rs 1,09,113.36 crore.
Titan said its revenue from jewellery business declined 2 per cent in September quarter despite a 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 Q2 FY'20 substantially due to adverse impact of the hedges matured during the quarter," the company said in a BSE filing on Monday.
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.
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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.
"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," the report said.