Titan Company Limited providing an update on its performance for Q3 FY 2017-18, reported that the Company had performed well during the period.

Generally speaking,  this quarter is a good one every year for the Company, yielding its largest revenues,   as the Indian festival and marriage season falls almost entirely in this period, Titan noted. 

This year, at the onset of the quarter,   two factors came into play which   further boosted its performance.

The first was the suspension of the applicability of the Prevention of Money Laundering Act (PMLA) to the jewellery industry in India (the Act had required jewellers to take KYC documents for all those buying jewellery valued at more than Rs. 50,000 and file relevant returns as applicable); however, the Company pointed out,   the Government’s requirement for PAN card details for purchases above Rs. 2,00,000 and ban on cash transactions for purchases above Rs. 20,000 remain in force.

The other was the favourable revision of GST – on watches and sunglasses it was reduced from 28% to 18%; and on frames from 18% it is now down to 12%.

Titan reported that its jewellery division – its largest revenue earner –  saw  a double digit growth for the quarter over the same period of the previous financial year; but the exact figures were  not revealed. However, the Company noted that  Q3 of FY 2016-17   had been its best in terms of revenue growth which had clocked in at 15%. This year, the growth of revenue for the period  was in line with the expectations of the management, the Company noted, and very healthy , despite the festival of Dussehra falling  in the previous quarter.

A total of 34 new Tanishq stores were opened adding   about 101,000 sq ft to its existing retail network. These new launches included 20 Gold Plus stores. However, till the end of the quarter a total of 25 Gold Plus stores representing about 65,000 ft in retail space, were closed.

While the Company’s Watches and Eyewear divisions performed well in Q3 FY 2017-18,  Titan was particularly pleased with the growth of its new fragrances business.

Titan is currently also exploring the market for “Special Occasion Ethnic Wear”; which venture, the Company says, in its pilot phase, with two stores under   the name of Taneira operating in Bangalore.