Titan Company jumped 4.34% to Rs 1252.05 after the company said its jewellery division recorded a recovery rate of around 98% (excluding sale of raw gold) in Q2 FY21 as compared to the revenue of same quarter last year.
"The walk-ins have been improving with conversion rates and average ticket size being higher compared to same period of last year," Titan said in its September quarterly update.
It further said that 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, it added.
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, the company said in a statement.
The firm continued to sell excess gold in its inventory and the quarter had a sale of approximately Rs 390 crore of raw gold. This has helped improve the cash flow of the division significantly.
Titan's watches & wearables division had a recovery rate of around 55% in Q2, compared to the revenue of same quarter in last year, with a recovery of approximately 70% in the September month. E-commerce is leading the recovery with absolute growth but the trade channel continues to pose challenges primarily due to de-stocking.
The company's eye wear division had recovery of approximately 58% in Q2, compared to the revenue of same quarter in last year, with a recovery of approximately 70% in the September month. After a gap of 1.5 years, the division has again started selling its products through Amazon and Flipkart, which is seeing a good response.
'Taneira' launched its first store in Chennai during the quarter gone by, taking the total store count for the business to thirteen covering six cities.
The recovery rate for fragrances and accessories was around 50%, dragged down by slow recovery of the two of the biggest channels, trade and large format stores (LFS).
Titan's subsidiary TEAL recorded a revenue decline of approximately 15% in Q2. Automation business segment continued to do well in Q2 as it has customers across diverse industries that seek automation solutions in their manufacturing facilities. However, aerospace & defense segment is challenged due to slow demand from original equipment manufacturer (OEMs), although there have been no order cancellations and a robust RFQ pipeline exists.
CaratLane had a strong recovery in the second quarter delivering a growth of approximately 14%. The growth was driven by a continued high demand in the online channel as well as a sequential improvement in the revenue of stores, many more of which were able to open during the course of the quarter as lockdown restrictions were lifted.
Titan Company is engaged in offering watches, jewelry and others. The company's segments include watches, jewellery, eyewear and others.
The company reported a net loss of Rs 291 crore in Q1 FY21 as compared to a net profit of Rs 363.4 crore in Q1 FY20. Total income during the quarter declined 61.2% YoY to Rs 2020 crore.
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