(Reuters) – Indian jeweller and watchmaker Titan Company said on Monday it expects a 25% increase in its fourth-quarter revenue, reflecting a faster growth rate compared to the same period a year earlier, helped by rallying gold prices.
The price of gold has risen about 15% this year, driven by escalating geopolitical tensions and uncertainties over U.S. tariff policy, as it is seen as a hedge against such risks. [GOL/]
Higher gold prices have not deterred affluent Indians from splurging on ornaments for weddings and accumulating gold as a form of investment, even as the middle class has reined in spending on discretionary items.
Sales at Titan’s jewellery business, which accounts for about 90% of its total revenue, was led by plain gold jewellery and coins, reflecting strong consumer preference for the precious metal, the company said in a regulatory filing.
The business, with brands such as Tanishq and CaratLane, is expected to have grown 25% year-on-year in the quarter ended March 31, with sales of plain gold jewellery rising 27% and gold coins climbing 65%.
Last year, Titan’s revenue grew 17% in the fourth quarter, while the company saw a 19% increase in its domestic jewellery operations.
Its watches segment, which accounts for 7% of the company’s total revenue and sells products of brands like Fastrack and Sonata, is estimated to have risen by 22%.
(Reporting by Shivani Tanna in Bengaluru; Editing by Vijay Kishore)
