NEW DELHI: Tata-owned Titan on Wednesday said that it has begun noticing a sharp return to normalcy and said that the lifting of restrictions over last few months across the country has helped this recovery.
Its jewellery division has also done very well in Q2FY21, the company said, with revenues having recovered tp around 98 per cent (excluding sale of raw gold) in the quarter, compared to the revenue of same quarter in the previous year.
Following the announcement, shares of Titan Company rose as much as 5.65 per cent to hit an intraday high of Rs 1,267.80 on Wednesday. According to the company, the recovery rate in metros that have been impacted the most by the pandemic has been improving gradually.
Non-metros seem to have recovered substantially and many cities have actually recorded growth compared to last year, the firm pointed out. The sale of gold coins have also been high, reflecting a rising customer preference to invest in gold as an asset class.
Titan sold Rs 390 crore of raw gold during the quarter. Its watches and wearables division had a recovery rate of around 55 per cent in Q2FY21, with a recovery of 70 per cent in the September month. Its Eye Wear division had had a similar recovery during the period. Titan’s revenue dipped 62 per cent year on year to `1901 crore during the quarter.