Shares of Titan are trading near a record high ahead of earnings.
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Overall sales increased 18 percent for the quarter. A CNBC-TV18 The survey expects the company’s operating profit to increase by a similar amount, while net profit could also show healthy growth.
The margin should remain stable year-on-year.
The company’s jewelry division, which contributes nearly 90% of overall revenue, grew 18% year-on-year on a high basis. The division had grown 66% in the September 2021 quarter, helped by pent-up demand and indirect purchases due to the pandemic.
In the jewelry sector, CaratLane recorded a growth of 56% compared to last year. Among the categories, solitaires grew the fastest, followed by studded and gold jewelry.
Of Titan’s other businesses, only the eye care business saw single-digit growth, while the others grew between 20 and 60 percent.
Eye+ stores also recorded strong double-digit growth during the quarter, which was offset by lower sales in retail and the distribution channel. 36 new Titan Eye+ stores were opened during the quarter.
Titan’s watch division achieved its highest quarterly revenue in September. Premiumization, coupled with the transformation of retail stores by offering a wider choice of premium brands to customers, contributed to business growth of 20% year-on-year in the quarter.
Shares of Titan are trading near their all-time high of Rs 2,791 ahead of their results. The stock is trading at a valuation of 65 times next year’s forward earnings. Stocks have gained 10% this year.