Titan sees business decline but confident of a comeback
today Oct 10, 2019
The jewellery and watch brand Titan reported a decline in its financials in the September quarter despite a 7% growth in retail sales but the business is confident of a comeback in the second half of the financial year.
"Retail sales (secondary sales) grew 7% in Q2 FY'20 but revenues as per financials declined 2% year-on-year in Q2FY'20 substantially due to adverse impact of the hedges matured during the quarter," Titan said in a filing on the Bombay Stock Exchange on Monday, as reported by the Press Trust of India.
The filing caused the business’ shares to fall by 5% on Wednesday morning. A rise in gold prices had contributed to a weaker performance then expected in June and July. Titan had already reduced its growth predictions in its watches and accessories division for the entire financial year due to the July slowdown.
However, Titan expects a comeback in the second half on its current financial year and already saw retail growth of 15% year-on-year between August and September. The second half of the financial year is traditionally stronger and Titan is confident that growth will increase, ET Bureau reported.
Titan owns the brands Titan, Sonata and Fastrack and jewellery contributes around 85% of the brand’s profits. The business reported selling around 16 million watches in the 2019 financial year and is one of the largest watchmaking brands in India.