Indian jeweller Titan posts slower sales as surge in gold prices dent demand

BENGALURU: India’s Titan Company reported an 18percent rise in domestic sales in the second quarter on Tuesday, slower than the 25 percent it registered during the same period last year, as soaring gold prices stunted demand for higher carat jewellery.

The jewellery business, which contributes close to 90 percent of overall revenue, grew 19 percent year-on-year, the Bengaluru-based company said in its business update for the quarter ended September 30.

Spot gold prices rose 16.4 percent in the quarter as investors fled to the safe-haven commodity amid global economic volatility.

Higher gold prices have led to a “marginal year-on-year decline” in buyer count, the company said, even as ticket prices rose as fewer customers bought more expensive items.

Studded jewellery in Titan’s Tanishq, Mia and Zoya portfolio collectively grew in the mid-teens, outpacing growth in plain gold jewellery, the company said.

Investment-grade gold coins continued their strong run for the quarter, the company said, as Indians chose to invest in the bullion as a store of value.