Bridal Sales Bolster Titan Growth

RAPAPORT... Sales at India's Titan Company increased in the first fiscal quarter, but growth was weaker than the jeweler had expected due to challenging conditions in the domestic market.Revenue climbed 16% year on year to INR 52.08 billion ($736.7million) in the three months ending June 30, while profit rose 11% to INR 3.64billion ($51.4 million). Sales were strong in studded and wedding jewelry, despite uncertain consumer demand, Bhaskar Bhat, Titan's managing director, said in a statement Tuesday. "The macroeconomic environment, coupled with lowerconsumption, has impacted some of our business," Bhat explained. "[Revenue growth was] below our internal expectation, as consumer demand fell in the month of June on [a] sudden surge in gold prices and [a] slowdown in consumption."Titan's jewelry sales grew 14% to INR 41.64 billion ($588.2million) during the quarter, with profit increasing by the same amount to INR4.37 billion ($61.7 million). Revenue from watches rose 20% to INR 7.16 billion($101.2 million), while profit for the category also went up 20% to INR 1.19billion ($16.8 million). India's bridal-jewelry sector benefited from a higher number of days considered auspicious for weddings during the quarter, the World Gold Council noted earlier this month. Titan is the largest jewelry retailer in India, with 1,640stores as of June 30. The company added a net 45 locations during the quarter. Image: A pair of 18-karat gold-and-diamond stud earrings from Titan brand Tanishq. (Titan Company)