A female costumer tries an earring in a Tanishq jewelry store in Mumbai, India. (Photographer: Santosh Verma/Bloomberg News)

Titan Achieves Strong Growth In Q3 Aided By Ongoing Wedding Season

Titan Ltd. clocked “good sales” during the ongoing wedding season due to a slightly stronger rupee, according to its Chief Financial Officer S Subramaniam.

“Sales traction post-Diwali has been quite good helped by a slightly stronger rupee and Q3 (performance) has been quite good,” Subramaniam told BloombergQuint. “Also, operating margin should be better in the second half due to greater top-line growth and lesser ad spending.”

India witnessed 10 percent increase in demand of jewellery for the quarter ending September after two consecutive quarters of year-on-year declines, according to a World Gold Council report. The report said the spike in demand was due to bargain hunters cashing on the opportunity when gold prices fell below Rs 2,970 per gram, the lowest level since January this year.

The country’s largest branded-jewellery maker is embarking on an “aggressive” network expansion strategy. The company plans to open 40 new outlets next year and intends to enter 100 new towns over the next five years, said Subramaniam.

Titan has an overall market share of 5-6 percent in the jewellery segment and will face competition from unorganised players as it expands, said Crisil in its December credit rating report. The increasing consumer awareness about purity of gold and Tata brand’s image will help the company penetrate new markets over the medium term, it said.

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Also read: Indians Are Buying Gold for as Little as One Cent