Titan Company provided its Q4FY22 update after market hours yesterday and the stock price fell today as its jewellery revenue dropped.
The company said that it finished the quarter on a satisfactory note despite Q4 FY22 getting disrupted twice - first due to the partial lockdowns caused by Omicron wave in January and again during the month of March in which consumer sentiments got affected adversely.
It cited reasons - (a) sharp increase and volatility in gold prices and (b) uncertainty due to a fragile gee-political situation.
Revenue from the jewellery division, fell 4% (YoY) and this was worrisome for the market as this unit contributes nearly 80% to total revenue.
The company said that the underlying demand continued to be strong across all of its businesses with most segments posting Y-o-Y growth over a very strong Q4 FY21 base. The network expansion and campaigns have continued to progress well in anticipation of an upbeat Q1 FY23 which is expected to be normal after a gap of two years of lockdowns in the same period.
While walk-ins saw minor decline, the customer conversions and ticket sizes grew marginally for the quarter compared to the same period last year.
Following this, the stock price of Titan fell today. The stock opened 1% lower at Rs. 2517 but fell down almost 3.5% to hit an intraday low at Rs.2457.40.