Mumbai/Chennai: Want to know if Gold sales in India is recovering from Covid-induced lockdown? Titan Industries offers a cue to that answer.
The company informed stock exchanges of its second quarter update on Wednesday. The second quarter refers to sales in the months of July-August-September.
The sales of jewellery and gold must've been dazzling enough for Titan to observe - "despite the inauspicious season of Shradh (Pitru Paksh observed in September), gold jewellery sales in September were decent".
"The jewellery division did very well in Q2, with a recovery rate of around 98% (excluding sale of raw gold) in Q2, compared to the revenue of same quarter in last year. The walk-ins have been improving with conversion rates and average ticket size being higher compared to same period of last year," added the notification.
From a recovery perspective, non-metros were swift while metros were making a gradual one.
Here are other observations:
1. Sold excess Gold from inventory - Rs 390 crores of raw gold which helped improve cash flow.
2. Wedding jewellery segment did well.
3. Sale of gold coins is reported as "high, reflecting customer's preference to invest in gold as an asset class".
4. Optimistic on festival season with new collections such as Zoya, Mia (associated with Disney), and new retail space addition 14 new Tanishq stores were added this quarter with retail space addition of approximately 60,000 sq ft.
5. Walkins to stores are improving and average ticket size is higher compared to same period of last year.
6. Sale of studded segment is yet to recover to last year' levels but "decent response to studded activation".
The Gold jewellery business saw the fastest recovery. Higher than even the watches and wearables category which saw a recovery rate of 55 percent in Q2. The eye-wear category saw recovery of nearly 58 percent during this period.
Titan attributed the growth (70% recovery in watches in Sept'2020) to e-commerce channel. "Ecommerce is leading the recovery with absolute growth but the trade channel continues to pose challenges primarily due to destocking," the note added.
It was during the Q2 quarter that Titan partnered with State Bank of India for a first of its kind contactless payment watch in India.
Stocks of Titan Company Ltd, listed on the BSE Sensex, soared by nearly 5 percent or 55.90 in intra-day trade. At the time of updating this story, stocks of Titan were trading for Rs 1,255.85 per share with a total trade quantity of 2.59 lakh shares.
Titan's 52 week high of Rs 1,389.85 was reported on 25th October 2019.