India’s prestigious jeweller and watchmaker, Titan Company, declared its estimated growth of 24 per cent in revenue for the third quarter of its fiscal year, with robust festive demand for jewellery being the main driver. The growth stands testament to the strong consumer traction during the Diwali and Dussehra season, which is traditionally critical for Indian gold purchases.
Jewellery, 87 per cent of the overall revenue, saw high single-digit growth in the number of buyers, the company said, and this momentum follows a 22 per cent revenue growth during the same quarter last year that more strongly established Titan as a leader in the domestic jewellery market.
India, the world’s second-largest gold consumer, witnessed a surge in gold demand during the quarter, coinciding with key festivals and the wedding season. The government’s decision in July to reduce import duties on bullion further spurred demand, making gold purchases more attractive to consumers.
The jewelry business of Titan includes brands like Tanishq and CaratLane. It reported good 26 per cent year-on-year growth for the quarter ended 31 December. The sales of plain gold items rose by 24 percent, whereas the sales of gold coins surged 48 percent, which is a reflection of consumers’ continued confidence in gold as a secure investment option.
In November, Titan admitted that lower customs duty might lead to the loss of ₹275-₹280 crore in the third quarter, owing to higher-cost inventory procured. The strength of the festive season has ensured that this could be a thing of the past, though it has strengthened investor confidence enough for Titan shares to rise 1.8% in early trade on Monday.
Apart from jewellery, the watches and wearables segment, with brands such as Fastrack and Coach, reported an increase in revenues of 15 per cent, which indicates steady demand across all categories.
This quarter’s performance demonstrated Tata Group’s resilience by allowing Titan to capitalize on the festive buying trend in India’s luxury retail market.
