Thus Titan, still remains - predominantly - a jewellery company.
More than 80% of Titan's business still comes from jewellery.
Unlike many other companies, before the Covid Crisis the organised sector also certain mid-level players are under stress due to GST and Demonetisation.
Selling Jewellery Online
During the Covid crisis - the company has now decided to sell its jewellery online on Amazon and Flipkart.
Titan said the jewellery division did very well in the second quarter, with a recovery rate of around 98 per cent (excluding sale of raw gold), compared to the revenue of the same quarter in last year.
'The recovery rate in metros that have got impacted the most by the pandemic has been improving gradually. Non-metros seem to have recovered substantially and many cities have actually recorded growth compared to last year,” it said.
Sales in September have been decent, despite the inauspicious period of 'Shradh', it said, adding that the festival season will commence about 15 days later in the current year.
The company said it continued to sell excess gold in its inventory and the quarter had a sale of Rs 390 crore of raw gold. This has helped improve the cash flow of the division significantly.
This is positive for Titan.
Net Reduction in No. of Stores
In the last 6 months 15 stores were added while 42 stores were closed by the division in the year to date, resulting in a net reduction of 27 stores.
Gearing for the festive season
The company had reported an unprecedented net loss of Rs 297 crore in the April-June quarter due to the COVID-19 pandemic.
'The company's return to normalcy on the business front has been progressing well with the almost complete lifting of restrictions in phased manner over last few months across the country,” Titan said in its quarterly update.
It stated that there has been greater acceptance of the new normal amongst consumers and they have been getting back to many of their routine activities leading to a positive on the walk-ins to the stores and time spent in stores.
The company is now gearing up to gain well from the upcoming festival season which is expected to further uplift the mood of the consumers.
Titan said business through the e-commerce channel has grown significantly across all divisions.
Watches and Eyewear also recover
Titan said its watches and wearables division had a recovery rate of around 55 per cent in Q2, compared to the revenue of same quarter in last year, with a recovery of 70 per cent in September.
Eye wear division reported a recovery of 58 per cent in Q2, compared to the revenue of same quarter in last year, with a recovery of 70 per cent in September.
(Disclaimer : This blog is for information purpose only. It os not to provide any advise or solicit any business)
