Titan nose dives post Q1 business update

The stock of Titan Industries presented its business update for the first quarter of FY20, post market hours on Monday. The company is experiencing the pressure of consumption slowdown and higher gold prices are also adding to the pain. The company’s growth was lower than what was projected.

In terms of jewellery business, the revenue increased by around 13 per cent as higher gold prices impacted demand. During Q1FY20, the company added 12 Tanishq stores.

Watches division grew robust by 19 per cent the company said in its exchange filing that this was partly aided by execution of a large institutional order from Tata Consultancy Service.

Eye wear business increased by 13 per cent and added 27 stores during the quarter while 9 stores were closed during the same period.

With this muted business for the quarter, investors have became cautious which reflected in Titan’s share price as it plummeted more than 13 per cent to touch intra-day low of Rs. 1,088.05 per share. At 10:16 hours, on Tuesday, the stock was trading at Rs. 1,092.2 per share, down by 12.8 per cent from previous close.