Indian jeweller Titan misses quarterly profit estimates as costs bite

India’s top jeweller Titan reported fourth-quarter profit below market expectations on Tuesday, as higher costs overcame demand for gold ornaments and coins.

Titan, home to the Tanishq and CaratLane jewellery brands, said profit stood at 11.79 billion rupees ($124.60 million) for the quarter ended March 31, compared to 8.71 billion rupees a year earlier.

Analysts, on average, had expected 13.92 billion rupees, according to data from LSEG.

Gold prices rallied over the last 12 months, with geopolitical and macroeconomic uncertainty contributing to inflation fears and a weak growth outlook.

India’s Titan logs quarterly sales surge on gold price rally, festive demand

That posed a threat to jewellers’ margins, even as demand for gold ornaments and coins held steady with more consumers visiting Titan’s stores.

Higher raw material costs and increased advertising spending pushed Titan’s total expenses 85% higher to 255.79 billion rupees.

Sale of products rose to 206.07 billion rupees, from 138.97 billion rupees a year earlier.