Titan Co. said the jewellery division has been “doing exceedingly well” and witnessed strong sales post the second covid wave, with Q2 of FY22 registering a revenue growth of 77% to Rs.6,106 crore ($816 million) excluding bullion sales.
The jewellery division achieved earnings before interest and tax (EBIT) of Rs. 793 crore ($106 million) for the quarter compared to Rs.285 crore ($38.1 million) in the same quarter of the previous year.
Plain gold jewellery recorded higher growth in Q2 FY22 than studded jewellery, the company said, adding that while studded jewellery has also grown, it is yet to reach pre-pandemic levels.
Titan said that enrolments in its new Digital Gold pilot offering have been encouraging, especially among younger consumers. The scheme helps customers purchase gold online with the ability to convert it into jewellery at a later stage.
The company’s retail chain now spreads across 1,969 stores in 308 towns having an area exceeding 2.6 million sq. ft. In the 6-month period from April 2021 to September 2021, the company has added (net) 60 stores.
Titan noted that CaratLane continued to do well in both online and offline channels, emerging as a strong omni player. For Q2 of FY22, it clocked revenue of Rs.289 crore (+95% year-on-year) and a profit before tax of Rs.10 crore compared to a loss of Rs. 4 crore in Q2 FY21.
C.K. Venkataraman, Managing Director, Titan Co., stated that: “Titan’s strong growth this quarter was underpinned by demand recovery being witnessed in all segments of the company. Our stores were fully operational, returning to pre-pandemic normalcy in most parts of the country with continued focus on health and safety of our customers, business partners and our employees. Titan’s store expansions have gained traction during the quarter, which was partially disrupted in the pandemic period. Our strong digital presence combined with trusted offline experience gives a positive outlook for the overall performance of the company for the rest of the fiscal year.” Mithun Sacheti, Founder and Managing Director of CaratLane, commented, “CaratLane, has been relentless in significantly strengthening its brand, widening the product portfolio, expanding geographically and gaining new customers during the challenging times of last 18 months, resulting in Q2 2022 being its best ever quarter even though Q2 is a seasonally weak quarter.”