Indian jeweler and watchmaker Titan Company said on Monday it expects its third-quarter revenue to rise 24%, driven by domestic demand for jewelry during the festive season.
Strong consumer traction during the festive season resulted in high-single-digit growth in purchases in the jewelry segment, said Titan, which derives about 87% of its total revenue from this business.
Last year, the company recorded a 22% increase in revenue in the third quarter.
Demand for gold in India typically strengthens towards the end of the year, which coincides with the traditional wedding season and major festivals, including Diwali and Dussehra, where buying bars is considered auspicious.
India, the world’s second-largest gold buyer, also cut import duties on bullion in July, making prices more attractive.
The quarterly report sent Titan shares up 1.8% in early trading.
Titan’s jewelry business, which includes brands such as Tanishq and CaratLane, grew 26% year-on-year in the quarter ended December 31.
Sales of regular gold increased by 24% and sales of gold coins by 48%, the Tata-owned company said, as customers continued to view bars as an investment.
Titan had said in November that it would likely lose between Rs 2.75 billion and Rs 2.80 billion in the third quarter following the cut in customs duties, due to inventory already purchased at higher prices.
The company’s watches and apparel segment, which sells products from brands such as Fastrack and Coach, reported 15% growth in revenue.
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