“The Company's return to normalcy on the business front has been progressing well with the almost complete lifting of restrictions in phased manner over last few months across the country,” it said.
There has been greater acceptance of the new normal amongst consumers and they have been getting back to many of their routine activities leading to a positive on the walk-ins to the stores and time spent in stores. The Company is now gearing up to gain well from the upcoming festival season which is expected to further uplift the mood of the consumers, it said.
Jewellery sales in September month have been decent, despite the inauspicious period of 'Shradh'. The festival season will commence about 15 days later in the current year. The Company continued to sell excess gold in its inventory and the quarter had a sale of Rs 390 crore of raw gold. This has helped improve the cash flow of the division significantly, the Tata group company said.
Titan enjoys a dominant position in the leading lifestyle categories of organized jewelry and watches. Its medium-term growth outlook remains good, supported by various initiatives to drive higher sales of wedding/studded/fashion jewelry, a strengthening value proposition, and new customer acquisitions.
Titan also stands to benefit from higher market share as jewelry purchases shift to organized players and the unorganized segment becomes less competitive. However the company is not immune to the risks from COVID-19 impact which will be a drag on F21 operating metrics, analysts at JP Morgan said in a note, with ‘neutral’ rating on the stock.
At 10:18 am, the stock was trading 4 per cent higher at Rs 1,250 on the BSE, as compared to 0.65 per cent rise in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 4.08 million equity shares changing hands on the NSE and BSE, so far.