Titan posts 25% decline in Q2 profit

“On account of the customs duty related losses, as well as the need to invest in growth of various businesses, the profitability of Q2 was quite depressed. However, we are quite confident about the competitiveness of each of our businesses and we remain optimistic about our performance for rest of the financial year,” said CK Venkataraman, Managing Director, Titan.

According to the company, the custom duty reduction saw revival in consumer interest as gold prices cooled off temporarily. The ensuing gold rush lasted well into mid-September. “Buyer growth was healthy and well accompanied by increase in average selling prices, both exhibiting double-digit growths. During the quarter, in India, Tanishq opened 11 new stores (net), Mia added 12 and Zoya added 1 store respectively,” Titan said.

“After a muted first quarter, Q2 witnessed encouraging growth across key businesses. Jewellery clocked healthy double-digit growth for the quarter. Our portfolio approach in this business of straddling diverse customer needs through the brands of Tanishq, Mia, Zoya and Caratlane is working well,” Venkataraman said.

“The buyer growth metrics were fairly strong and in good double-digits across gold and studded product categories. The quarter also witnessed analog watches growing 25 per cent plus over last year with commensurate uptick in volumes,” he said.