Titan Co. Ltd’s jewellery business, which accounts for a lion’s share of its revenue and profits, did well in the December quarter despite demonetization. That impressive run has continued in the March quarter—in fact, growth has been better this time around.
Revenue from the jewellery segment increased a handsome 55% year-on-year for the March quarter and accounted for 82% of its total revenue. Jewellery revenue increased 15% in the December quarter. Volume, or grammage, growth was 37% in the March quarter, much better than the 4% growth in the December quarter.
Successful studded jewellery activation of promotions last quarter helped, but the base was favourable considering that jewellery activation had started in December of financial year 2016. Further, mandatory permanent account number (PAN) card for purchases above Rs 2 lakh and a strike related to the imposition of excise duty had cumulatively impacted walk-ins and sales in the March 2016 quarter.
Aruna Gaitonde, Editor-in-Chief of Asian Bureau, Rough & Polished
Revenue from the jewellery segment increased a handsome 55% year-on-year for the March quarter and accounted for 82% of its total revenue. Jewellery revenue increased 15% in the December quarter. Volume, or grammage, growth was 37% in the March quarter, much better than the 4% growth in the December quarter.
Successful studded jewellery activation of promotions last quarter helped, but the base was favourable considering that jewellery activation had started in December of financial year 2016. Further, mandatory permanent account number (PAN) card for purchases above Rs 2 lakh and a strike related to the imposition of excise duty had cumulatively impacted walk-ins and sales in the March 2016 quarter.
Aruna Gaitonde, Editor-in-Chief of Asian Bureau, Rough & Polished
