Shares of ace investors Rakesh Jhunjhunwala-backed Titan Company rallied nearly 8% in intraday trade on Thursday after the company reported strong sales in the first quarter of fiscal 2022-23 (Q1FY23). The Tata Group company has reported a 205% year-on-year (YoY) rise in total sales in Q1FY23, driven by strong wedding demand and low base effect as the corresponding period of the last year was impacted by the Covid-19 pandemic.
Boosted by strong sales, Titan share price opened higher at ₹2,130, against the previous closing price of ₹2,013.4 apiece on the BSE. During the session so far, the Rakesh Jhunjhunwala stock gained as much as 7.83% to hit an intraday high of ₹2,170.95 amid a spurt in buying activities. On the volume front, as many as 1.4 lakh shares amounting to ₹29.7 crore changed hands over the counter on the BSE, against the two-week average volume of 0.54 lakh stocks. The market capitalisation of the Sensex heavyweight surged to ₹1,88,250.6 crore.
The stock price got a boost after the watch-to-jewellery firm in an exchange update said its sales were back to near normal in the April-June quarter of 2022, after two years of Covid-induced lockdowns in this period. “Sales in Q1FY23 grew 205% YoY on a low base and clocked a 3-year CAGR of 20.5% over Q1FY20, the only non-disrupted first quarter,” it said in a BSE filing on Wednesday.
Segment wise, the jewellery division had a good start to FY23 with robust sales on account of Akshaya Tritiya in May, which is considered auspicious to buy gold. On a low YoY base, revenues nearly tripled, clocking a growth of 207%, with both walk-ins and buyers growing in tandem, whereas ticket size marginally improved compared to Q1FY22.
“Growth in plain gold jewellery was nearly 3-times whereas studded sales were comparatively higher YoY,” it said.
During the quarter under review, the company continued store expansions (net) with commissioning of 6 new domestic stores in Tanishq and 13 in Mia.
The watches and wearables segment achieved its highest ever quarterly revenue in Q1FY23, growing 158% YoY with healthy growth witnessed across all brands and products. “The key channels of Multi-Brand Retail (MBR), Titan World and Large Format Stores (LFS) continued on their growth trajectory from FY22. The wedding season worked really well for all brands and channels especially in April and May,” it said.
In a similar trend, the EyeCare division registered a growth of 176% YoY, led by both Titan Eye Plus (TEP) and Trade & Distribution channels.