Titan plummets on Q2FY20 business update

In response to Titan’s Q2FY20 quarter update, the stock of Titan fell as much as 7 per cent to touch intra-day low of Rs. 1177.75 apiece.

Titan informed the exchanges that the jewellery business witnessed pressure from higher gold prices and revenue in Q2FY20 witnessed 2 per cent YoY fall. The company said that its retail sales in July declined. However, with higher promotion and schemes, retail sales in August and September grew 15 per cent YoY. During the quarter, the company added net 21 Tanishq stores.

Titan’s watch segment witnessed 7 per cent YoY growth in Q2FY20, while, in first half of FY20, growth was 13 per cent. This division witnessed strong traction from Multi Brand Outlets (MBO) than exclusive brand outlets (EBO). This division added 17 World of Titan (WOT) stores, while, 14 were closed. Further, it added net 8 Fastrack stores. Also, the company added net 10 Helios stores during the quarter.

On the other hand, the eye wear division of Titan recorded strong growth of 28 per cent in Q2FY20. The division added 24 net stores. In terms of subsidiaries’ performance, TEAL and CaratLane recorded 9 per cent and 75 per cent YoY growth. Besides, the company increased its stake in CaratLane by 2.8 per cent to 72.3 per cent.

The company has updated that its managing director Bhaskar Bhat has retired and C.K.Venkataraman has replaced him.

However, the stock later recover and at 12.06 hours, it was trading at Rs. 122, down by 2.9 per cent from previous close.