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    Titan shares rally over 3% to fresh record high. What's behind the glitter?

    Synopsis

    In a regulatory filing, after market hours on Thursday, Titan said it recorded revenue growth of 20% year-on-year (YoY) for Q1 with all key consumer businesses exhibiting double-digit growth in the June quarter.

    Titan shares rally over 3% to fresh record high. What's behind the glitter?Agencies
    Shares of Tata Group fashion and lifestyle products retailer Titan on Friday rallied up to 3.4% to hit a fresh 52-week high of Rs 3,211 on BSE as investors welcomed the June quarter business update shared by the company.

    In a regulatory filing, after market hours on Thursday, Titan said it recorded revenue growth of 20% year-on-year (YoY) for Q1 with all key consumer businesses exhibiting double-digit growth in the June quarter.

    Titan's mainstay jewellery business impressed with a growth of 21% YoY as it added a total of 18 stores last quarter to take its total store count to 559.

    "Buyer growth was higher than average ticket size growth for this period. Despite significant volatility in gold prices throughout the quarter, Akshaya Tritiya sales in April and wedding purchases in June were robust. The key categories of gold and studded grew well with no notable change in the overall product mix. New store additions, golden harvest and exchange programs continued to do well during the quarter," Titan CFO Ashok Sonthalia said.

    Tanishq added a new store in Sharjah, thereby expanding its international presence to seven stores in the Gulf region and one store in the USA. The domestic new store additions consisted of nine stores in Tanishq and eight stores in Mia by Tanishq.

    Titan's watches & wearables division's 13% YoY growth consisted of 8% growth in analog watches segment and 84% YoY growth in wearables.

    "Brand Titan and international brands saw strong buying momentum clocking handsome double-digit growths. Consumer preferences for premium brands resulted in a good uptick in the average selling price for watches," the company said.

    Amongst key channels, Helios chain, large format stores (LFS) and e-commerce clocked higher growth rates compared to others. Of the 26 new stores added in the quarter, 14 stores were in Titan World, nine stores in Helios and three stores in Fastrack, respectively.

    The eyecare division saw sales growth of 10% YoY, fragrances & fashion accessories grew 11% YoY while Taneira's Q1 sales grew by 81% YoY.

    CaratLane also recorded a healthy growth of 32% YoY.

    Titan stock, in which the billionaire Jhunjhunwala family is one of the largest investors, has rallied over 25% in the last three months and given around 215% return in the last three years.



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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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