Titan scales record peak as easing virus curbs boost second-quarter sales

Reuters Updated - October 07, 2021 at 11:40 AM.

Shares of Titan gained as much as 9.3% to ₹2,347.40

Titan fastrack watches . Photo : Bijoy Ghosh

Shares of watch and jewellery maker Titan Company Ltd hit a record high on Thursday, as the company saw strong revenue growth in the second quarter across most of its businesses boosted by a gradual reopening in the country.

The Tata Group-owned company reopened most of its stores, as a fall in coronavrius cases and easing pandemic restrictions led to a recovery in demand, with sales moving “swiftly above or close to pre-pandemic levels in most of the divisions,” the company said in a statement on Wednesday.

Titan's flagship jewellery brand, ‘Tanishq’, saw second-quarter revenue grow 78%, as purchasing of gifts, buying for special occasions and milestones, weddings and investments in gold surged.

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A correction in local gold prices to their lowest level in nearly six months has also prompted jewellers to step up purchases for the festive season, a government source told Reuters on Monday.

“While we anticipated (Titan) to report strong revenue growth, (the second-quarter performance) is significantly ahead of our and street expectations,” JP Morgan said in a research note, raising its price target on the company to ₹2,320($31.02) from ₹2,000 earlier.

Shares of Titan gained as much as 9.3% to ₹2,347.40 ,and were up 8.0% at 0430 GMT.

Published on October 7, 2021 06:10