Titan estimates 24% rise in Q3 revenue on booming jewellery demand

Indian jeweller and watchmaker Titan Company said on Monday it estimated a 24 per cent rise in third-quarter revenue, buoyed by domestic festive demand for jewellery.

Strong consumer traction during the festive season translated into high single-digit percentage buyer growth in the jewellery segment, said Titan, which gets about 87 per cent of its total revenue from the business.

The company had reported a 22 per cent rise in third-quarter revenue last year.

Gold demand in India usually strengthens towards the end of the year, which coincides with the traditional wedding season and major festivals including Diwali and Dussehra, when bullion buying is considered auspicious.

India, the world's second-biggest buyer of gold, had also slashed import duties on the bullion in July, making prices more appealing.

The quarterly report sent Titan's shares 1.8 per cent higher in early trading.

Titan's jewellery business, which houses brands such as Tanishq and CaratLane, grew 26 per cent year-on-year in the quarter ended December 31.

Sales of plain gold grew 24 per cent and gold coin sales grew 48 per cent, the Tata-owned company said, as customers continued to view the bullion as an investment.

Titan had said in November it would likely lose between 2.75 billion rupees and 2.80 billion rupees in the third quarter following the customs duty cut due to inventory already bought at higher prices.

The company's watches and wearables segment, which sells products from brands such as Fastrack and Coach, recorded a 15 per cent revenue growth, it said.