Titan Enjoys Diwali Boost to Sales and Profit

RAPAPORT... Revenue and earnings rose at Titan Company in the third fiscal quarter as the Indian jewelry retailer saw a recovery in consumer demand during the important Diwali period.Sales climbed 17% year on year to INR 76.59 billion ($1.06 billion) in the three months ending December 31, including at subsidiaries, the company reported last week. Profit increased 12% to INR 5.3 billion ($73 million).Titan noted an "impressive festive-season recovery in the jewelry division," with sales for the category up 22% at INR 68.36 billion ($942 million) during the quarter. The diamond-studded segment experienced a "significant" rebound, coin sales were high, and wedding-jewelry sales also grew, the group added. Revenue from watches fell 12% to INR 5.51 billion ($75.9 million)."The recovery witnessed has been significantly better than what we had hoped just a few months back," said C.K. Venkataraman, Titan's managing director.Sales for the first nine months of the fiscal year dropped 13% compared to the same period in 2019, for a total of INR 142.8 billion ($1.97 billion). Profit plunged 65% to INR 4.06 billion ($55.9 million), reflecting heavy losses earlier in the year. While spending plummeted from March through June amid lockdowns, it picked up in the run-up to the November 14 Diwali festival as retailers benefited from a release of pent-up demand.Image: A Titan store in Deoghar, Jharkhand. (Shutterstock)