Titan Company jumped 8.74% to Rs 2,334.45 after the company announced a robust business update for the second quarter of fiscal year 2022.
Titan witnessed strong recovery in demand after the second wave across its consumer businesses with sales moving swiftly above or close to pre-pandemic levels in most of the divisions. The company said most stores are now fully operational barring few in select towns having localized restrictions, with overall store operation days exceeding 90% for the quarter.Titan's jewellery segment revenue jumped 78% year on year in Q2 FY22. The demand postponement triggered by the second wave of the pandemic in avenues like gift purchases, weddings, investments in gold etc. witnessed a strong comeback in Q2. Titan said both plain and studded segments grew in double digits, however a much stronger growth in the plain segment led to studded mix being below pre-pandemic levels. Digital Gold is a new pilot offering that helps customers purchase gold online and lock-in the gold prices with an ability to convert it into jewellery at a later stage. Titan said early response has been good with enrolment of many digitally-savvy young customers. The Golden Harvest Scheme (GHS) enrollments surpassed the pre-pandemic levels. The company added 13 new stores in jewellery division in Q2 FY22.
CaratLane's business continued its growth trajectory with strong consumer demand in Q2 FY22. Omni-channel framework providing versatile options to customers like buy online. The segment revenue jumped 95% year on year in Q2 FY22.
The company's watch and wearables division recovered rapidly in Q2 with sales acceleration witnessed across all product brands. The E-commerce sales also continued its growth momentum. Walk-ins continue to slowly improve with malls and LFS at 65% and 70% of pre-pandemic levels respectively. Titan said tier-2 cities are witnessing better recovery in walk-ins compared to metros. The watch segment revenue grew by 73% year on year in Q2 FY22. The company added 8 new watch stores in Q2 FY22.
In Eye Wear segment, E-commerce push progressed well with launch of Titan Eyeplus' App. Titan said healthy growth was witnessed across all segments. Eye wear segment revenue surged by 74% year on year in Q2 FY22. Titan opened 24 new stores in eye wear segment in the quarter ended September 2021.
The financial performance of Titan Engineering and Automation, a wholly owned subsidiary of the company, was subdued due to delay in execution and shipments, primarily caused by semiconductor shortages, logistics and travel restrictions, which are expected to ease in H2 FY22.
Titan Company is engaged in making and selling watches, jewellery, eyewear and others. On a consolidated basis, the company's net profit stood at Rs 18 crore in Q1 FY22 as compared to a net loss of Rs 297 crore in Q1 FY21. Consolidated revenue from operations soared 119.59% to Rs 3,004 crore in Q1 FY22 from Rs 1,368 crore in Q1 FY21.
Shares of Titan hit a record high of Rs 2,347 in intraday today on BSE. The scrip has zoomed 102% from its 52-week low of Rs 1154 posted on 2 November 2020.
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