Titan CFO wants people to see jewellery as good investment option too
Subramaniam said that Titan's market share gain story remained intact in Q3 across the board, particularly in the south region.
Titan Co. expects fourth-quarter growth to be in the moderate range of 11 percent to 13 percent as the company is hopeful of better performance in February and March, said CFO S Subramaniam. In Q3FY20, Titan's earnings were largely in-line with estimates with margins beating expectations.
Subramaniam said that Titan's market share gain story remained intact in Q3 across the board, particularly in the south region.
Talking about the jewellery business, Subramaniam said Titan is not targeting aggressive growth next year onwards. "People start looking at gold as an investment, besides it is a jewellery item, then we might start seeing some upside, but a little too early to say.”
He said market share gain in jewellery business remained unabated in Q3.
“We would be definitely looking at growth higher than that for the whole year because we would have some base effect gains etc., so hopefully we should be better than the second half of this year,” Subramaniam added.
Subramaniam hopes that watches segment will do better in the Q4FY20. "Watches won’t be a major concern for us including margins; margins did dip in the quarter but we should be better off in the last quarter. So we should hopefully be better than last year as far as margins are concerned.”
“Eyewear has been disappointing; the growth has been challenging for various reasons. We will be possibly better in this quarter but profitability challenges are continuing in this business and it requires serious addressing,” added Subramaniam.
Speaking about hallmarking of gold, he said, “While hallmarking is going to ensure that people get 22 karat gold, it would mean that the cost is going to go up for those who are not complying at this point in time and therefore, the only way they can make margins by increasing the making charges. We don’t need to do anything and therefore, the competitor advantage, I don’t think goes.”
CaratLane is growing very well for Titan and profits will sustain, said Subramaniam.
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