Money Market Guru — Jewellery sales in organized sector remain on track, according to a quarterly business update from Titan Company. The company’s Jewellery division had a very good quarter, aided by a very successful studded jewellery activation . The division has achieved a new milestone in terms of sales as well as profits.
The division ha d a favorable base this quarter as in the last financial year, the studded jewellery activation started in December, imposition of Rs 200000 PAN card had caused a temporary stagnation in walk-ins in January and February and sales in March were very poor due to the strike related to imposition of excise. Due to the resounding success of the studded jewellery activation , the gross margin of the division is likely to be good this quarter. The retail growth for Tanishq for the quarter was in excess of 40% expected at the beginning of the quarter.
The company said it witnessed significant traction in the second half of FY 2016-17 despite the effect of Demonetization. While the GST rates are yet to be announced and a high rate for Jewellery might have some effect on Titan’s growth, the company believes that the formalization of the economy bodes well for the company.
The company noted that FY 16-17 was an exceptional year for the company on many fronts. It struggled for growth in H1 due to uncertain consumer sentiments and the aftermath of jewellery industry strike and Rs 200000 PAN limit. However, the second half of the year exceeded expectations despite the serious regulatory impact of Demonetization. — Money Market Guru