Titan Hopeful for Diwali as Sales Recover

RAPAPORT... Titan Company, India's largest jewelry retailer, gave an optimistic outlook for the upcoming Diwali holiday season after resurgent gold demand boosted revenue during the second fiscal quarter.Consumer sentiment improved in the three months ending September 30 as India's Covid-19 restrictions eased and stores reopened, Titan reported last week. The sales decline was gentler than in the previous quarter, with the company returning to profit following heavy losses during the height of the country's lockdown."The recovery that the company has witnessed in the quarter has been very satisfying, and the positive consumer sentiment witnessed gives rise to hope that the festive period could be good for all the divisions of the company," said Titan managing director C.K. Venkataraman.Group revenue, including subsidiaries, dropped 2% year on year to INR 46.01 billion ($617 million), though the figure exceeded the INR 20.2 billion ($270.9 million) the retailer achieved in the first fiscal quarter ending June 30. Profit fell 45% year on year to INR 1.73 billion ($23.2 million), but compared favorably with the first-quarter loss of INR 2.97 billion ($39.8 million).Jewelry sales rose 9% to INR 39.83 billion ($534.2 million), mainly driven by demand for plain gold jewelry and gold coins, while more discretionary items such as studded jewelry performed less strongly, Titan explained. Watch revenue slumped 44% to INR 4.01 billion ($53.8 million).Diwali, which occurs on November 14, is the most important jewelry-selling period on India's retail calendar, with many consumers considering it an auspicious time to buy gold. It also kicks off the country's wedding season, which lasts for several months.