📅 Nov 04, 2025NDTV Profit11 MIN16 SEGMENTS · 2 SPEAKERS
Titan Company has delivered a strong performance in their second quarter results. There has been an impressive growth in the ...
Questions asked in this interview
8
0:00So is this due to a seasonal inventory built up ahead of the festive season?
1:24Uh, hypothetically, every 1 or 2% increase in gold prices, what's the kind of impact that it could have on the margins?
2:32So what is that strategy going to look like from here on?
3:46So would it be right to say that, uh, you know, the buyer volume growth for Q2 has been stronger and the outlook for H2 is expected to remain strong as well?
4:33For example, Carat Lane, if you're talking about Tanishq or Damas, what are you looking at?
5:58And is this going to be for the international market alone, or are you seeing a similar trend for the Indian markets as well?
My first question to you is: is this something which is sustainable across aspects, especially when you have to talk about the overall margins and the marginal dip that we've seen in terms of the operating margins, only if I compare on a sequential basis? So is this due to a seasonal inventory built up ahead of the festive season?
Um, so thank you. I'm very happy and very satisfying performance on quarter 2, particularly if you look at our subsidiary companies and international performance. You know, Carat Lane, Teal, and all international subsidiaries have done exceedingly well, actually. On a standalone basis, we grew about 18%, but overall Titan at a group level has grown about 22%, which is very, very satisfying performance for us. As far as jewelry margin is concerned, while we have delivered in the 11.1% for domestic business, there is a headwind continuing in terms of gold prices the way they are going up, and they impact margin in multiple manners. While we are trying to pull all possible levers to kind of offset that pressure, but if gold prices continue to go like this, it will be very, very difficult to maintain these margin levels.
That's very interesting to hear and for viewers and investors to understand. Uh, hypothetically, every 1 or 2% increase in gold prices, what's the kind of impact that it could have on the margins? If you could just give us a ballpark idea.
So, not yet developed a thumb rule for that because we have several moving parts in the whole game. The product mix plays a very, very important role between plain jewelry, complex jewelries, diamond jewelry, coin, etc. So that is why, you know, it will be oversimplifying if we say 5% of gold price increase would have 10 basis point or 15 basis point impact on margin, because we have also not only doing a lot of exchange program, we are also trying to introduce low caratage jewelry and light jewelry which is 18 karat, 14 karat, and light jewelry. So all of these have an impact in different directions, and our management team's endeavor is how do we kind of continue to deliver a consistent and sustainable margin profile for the company.
Okay Ashok, you mentioned about lower price band gold jewelry. Now in this quarter itself, the growth in this segment has been sluggish. Uh, what is the outlook looking like? And secondly, the studded buyer growth has been marginally higher even if we exclude the coins. So what is that strategy going to look like from here on?
Uh, so for gold buyers, you know, what we are saying: sub one lakh price point, where typically middle income group would be buying their gold jewelry, still seems to be sluggish and stressed. It is the high price point where we see the people are still coming out and kind of buying gold jewelry. The studded is a completely, in a way, distinct category with its own strategy, and we are finding with a lot of introduction even at, you know, one lakh, two lakh price points and a lot of innovation around solitaire etc. We are seeing not only in this quarter but for the last four or five quarters, buyer growth is better than gold jewelry. Other than coin, you know, coin has its own trajectory at this point of time because of the investment angle associated with that, and it's just unabated going up.
Okay. So would it be right to say that, uh, you know, the buyer volume growth for Q2 has been stronger and the outlook for H2 is expected to remain strong as well?
So buyer growth in studded has been better than the gold buyer growth in festive season. We have found the buyer growth better than the first six months. I would say the first five or six months of the year, because now the people are getting used to high gold price point. So whoever have been deferring so far, they all, kind of fence sitters, all jumped in during festive season, and we are seeing that even continuing post Diwali also. Maybe now the wedding season is kicking in. So we continue to see buyer growth improving compared to what we have seen in the last three or four quarters.
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