Dolat Capital: Titan Q1 Results - Strong Recovery In July; Jewellery Segment Expected To Recover In H2 FY21
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Dolat Capital Report
Titan Company Ltd.’s Q1 FY21 revenue was in line, but operational performance was lower than our estimates.
Jewellery business reported a 56% YoY revenue de-growth in Q1 FY21. Though April was a complete washout, Jewellery segment was able to recover 20% and 77% in May and June. Further, the segment was able to report 1% revenue growth in July owing to advancement of activations.
Going ahead, we believe that the postponement of marriage season to H2 FY21E would result in pent up demand. However, we believe that the studded jewellery share would remain under pressure for some time.
Watches and eyewear segments are yet to witness significant improvement.
Other expenses remained high due to increase in ineffective hedges. Going ahead, ineffective hedges are likely to reduce substantially with normalisation of demand scenario.
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