Titan Company share rose over 2% today after the jewellery maker said it continued to witness strong business momentum as the impact of COVID on consumer sentiments seemed to fade in the early part of January-March quarter.
Titan Company stock touched an intraday high of Rs 1,561 rising 2.3% on BSE. The large cap share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
The share has risen 60% in one year but fallen 3.22% since the beginning of this year. Market cap of the firm stood at Rs 1.34 lakh crore. The luxury goods maker recorded a strong revenue growth of 60 per cent for the overall March quarter due to the low base of March 2020, with revenue growth of over 36 per cent in the comparable January and February months.
“The company continued to witness strong business momentum as the COVID impact on the consumer sentiments seemed to fade in the early part of the quarter. After recording the best ever revenue in Q3, which was a festive season, the company again recorded very strong revenues in Q4,” Titan said in its quarterly update.
While the jewellery division has emerged very strongly from the crisis and witnessed strong growth in the quarter, the watches and wearables and the eyewear divisions also made very good progress on recovery.
Titan’s jewellery division continued to see the strong sales momentum in the March quarter, reflecting the strong market share gains, as per the update.
Sharp decline in gold prices during the quarter also gave impetus to the consumer demand for the industry. The fourth quarter of the last fiscal also had a large B2B (Business to Business) order, contributing to about 10 per cent of the quarter’s growth, the company said.
In Q3 of the previous fiscal, the Tata group firm reported a 11.81% increase in consolidated net profit to Rs 530 crore led by income growth in the jewellery division.
The company had reported a net profit of Rs 474 crore in the corresponding period last fiscal. Total income in Q3 stood at Rs 7,659 crore, up 16.93% as against a total income of ?6,550 crore in the year-ago period. “Titan Company reported a return to year on year growth in sales in Q3 of FY 2020-21 led by an impressive festive season recovery in the jewellery division,” the company said.