Titan shares rise ahead of Q2 results; jewellery segment likely to drive revenue growth

The watches and wearables segment are also expected to be strong growth drivers while other Emerging businesses are shaping well and EyeCare may see a double-digit growth boosted by international brands.

Titan Company's net profit in the September quarter is expected to just increase by 1.9% on-year to ₹889 crore, according to analysts. The Tata group company is expected to see a revenue growth of 18.8% year-on-year to ₹10,449 crore during the July-to-September period.

Anushi Vakharia of StoxBox expects about 60 basis point moderation in margins on a annual basis due to an increase in brand-building investments and uptick in consumer offers. However, Vakharia said that margins will expand on a sequential basis, with Titan’s focus on promoting its studded business, which has a higher ticket share.

Sharing its quarterly business update earlier in October, Titan said it reported a 20% growth in standalone revenue for the second quarter. During the period, the company added 81 stores across verticals, taking the group's retail presence to 2,859 outlets.

Its jewellery division posted a revenue growth of 19%. Building on the positive first quarter momentum, domestic consumer sales (secondary) exhibited strong year-on-year growth and were led by double-digit increase in buyers and ticket sizes.

The Watches & Wearables (W&W) Division's domestic business grew 32%. This comprises 22% growth in the Analog watches and over two-fold growth in Wearables. "The Wearables category's nearly 2.5 times year-on-year (YoY)growth propelled the segment's share to mid-teens in the W&W portfolio," the company had said.

On the 'EyeCare' segment, Titan said it "witnessed sales growth of 12% on-year." International brands grew faster as compared to House brands.

Its Fragrances & Fashion Accessories (F&FA) grew 4% YoY. This was driven by 14% growth in fragrances and 12% growth in fashion accessories, the updates said.