Shares of Titan Company fell nearly 3 per cent on Wednesday after the firm reported a decline in revenues in jewellery business in the second quarter of 2019-20.
On the Bombay Stock Exchange (BSE), the stock plunged 3.34 per cent at Rs 1,216.20.
The scrip was down 3.10 per cent at Rs 1,220 on the National Stock Exchange (NSE).
The company said its revenue from jewellery business declined 2 per cent in the September quarter despite 7 per cent growth in retail sales.
“Retail sales (secondary sales) grew 7 per cent in Q2FY20 but revenues as per financials declined 2 per cent year-on-year in Q2FY20, substantially due to adverse impact of the hedges matured during the quarter,” the company said in a BSE filing on Monday.
The jewellery business saw a sharp fall in sales from mid-June on the back of surge in gold prices. The trend continued in July and resulted in considerable de-growth in sales during the month, it added.
However, the company saw retail growth of 15 per cent year-on-year between August and September.
A report by Edelweiss Financial Services said it expects the second quarter to be ‘soft’ for Titan with an year-on-year growth of about 6.9 per cent. Also, for jewellery business, growth is expected to be around 6 per cent year-on-year.