Titan share price declines 2% after September quarter business update

Titan share price: Shares of Tata Group-owned jewellery retailer, Titan Company, fell as much as 2.95 per cent to hit an intraday low of Rs 3,555 after the company gave quarterly business update for second quarter of current financial year post market hours on Friday. The company in a regulatory filing said that it registered 25 per cent annual growth and opened a total of 75 stores taking the total store network to 3,171 stores. Titan shares have so far this year declined 2.58 per cent as against 13 per cent surge in the 30-share BSE benchmark Sensex .

During the July-September quarter, Titan's domestic jewellery business rose 25 per cent and the company added 24 new jewellery stores taking the total count to 723 stores.

The company in a stock exchange filing said, "Consumer demand significantly picked up momentum after the reduction in custom duty on gold imports from 15% to 6% leading to a strong double-digit uptick in gold (plain) for the quarter. The non-solitaire studded segment recorded growth in high double-digits whereas the solitaire segment saw a decline amidst price uncertainty and demand supply dynamics in the international markets, both together resulting in overall studded sales growth in low double-digits for the quarter."

Its watches and wearables business rose 19 per cent annually and revenue in analog segment jumped 25 per cent and premiumization theme continued to be a major driver across brands. However, its wearables business witnessed decline in low double-digits in a category that is continuing to see significant decline, the company noted.

"In Emerging Businesses, Taneira's Revenue grew 11% YoY. The brand opened 4 new stores during the quarter, two of them in the new cities of Indore and Prayagraj. The Fragrances & Fashion Accessories Revenue grew 17% YoY. Within businesses, Fragrances grew by 19% YoY and Fashion Accessories grew 11% YoY," Titan said.

As of 10:59 am, Titan shares were trading 1.91 per cent lower at Rs 3,593, underperforming the Sensex which was down 0.24 per cent.