Tata Group-owned Titan Co Ltd reported a surprise fall in third-quarter profit on Thursday as high inflation hurt demand for jewellery and watches, sending the company's shares down to an over six-month low.
Shares of Titan, which also sells eyewear and owns the Tanishq jewellery brand, fell as much as 3.3 per cent to Rs 2,269.60 in late afternoon trading.
Titan's profit fell 3.7 per cent to Rs 951 crore ($115.8 million) in the three months ended Dec. 31, from Rs 987 crore a year earlier.
Analysts, on average, were expecting Titan's profit to rise to Rs 1035 crore, according to Refinitiv IBES data.
Revenue grew 11.3 per cent to Rs 10,444 crore.
Revenue from the jewellery business, which accounted for 90 per cent of the total, grew 14.1 per cent, while profit in the segment dipped.
A rise in gold prices has led to a 3 per cent fall in consumption in India, the world's second-biggest bullion buyer, the World Gold Council said in a report on Tuesday.
Elevated retail inflation levels further hit the rural sector, which usually constitutes two-thirds of gold sales.
Bullion demand is usually high in India around festivals – a large number of which are in the early part of the October-December quarter – when buying gold is considered auspicious.
However, this period saw fewer wedding dates last year.
($1 = 82.1280 Indian rupees)
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks