Following the ritual of presenting the quarterly update, giving us a heads-up on what to expect from its Q1FY20 earnings, Titan estimated a muted road ahead as India faces a slowdown currently.
In jewelry, the company said that consolidated revenue grew by 13% as sharp increase in gold prices dented consumer demand significantly in the month of June. The division added 12 Tanishq stores on both gross and net basis during the quarter, with the retail space addition being approximately 34,000sq.ft.
The watches division showed a 19%, mainly aided by execution of a large institutional order from TCS. It added 10 WOT stores and closed 8, added 5 Fastrack stores while closing 2 and for Helios added 6 stores while closing 1 store during the quarter. Growth for this division is driven by e-commerce.
The company stated that the quarter witnessed a tough macro-economic environment with consumption being hit.
The market is naturally perturbed with this statement and the stock is the top loser on the BSE since morning, with the stock opening over 6% lower at Rs.1175.55 and going down to an intraday low at Rs.1072.60, a drop of 14.5%.