'Mid To High Teen Growth Rate For The Full Year': Titan Company CFO

Okay, thank you Maya for having me and good morning to your viewers. Yes we did speak about it yesterday that in this quarter our profitability had a one-time benefit of about 100 cr equally distributed between jewelry division and watch division. In watches, we run inventory standard cost valuation once a year and that typically happens in June, and this time because of their premium Nebula watches volume also going up, gold prices going up, material cost and labor cost all going up. There has been a significant impact of that and this impact which is about 400 basis points on this quarter's margin is likely to reverse over the next two quarters considering inventory turn of about two to three quarters. So by FY26 it should flush out of our P&L. I believe that watch division with the growth trajectory it has and extremely well analog performance, main margin overall basis they should certainly deliver for FY26.

Titan as a whole, overall if you see this quarter, both put together was about 75 basis points impact. So overall Titan wise it's not that much. In jewelry the 50 basis points came again. We have a lot of hedges on our books and because of the gold price volatility and other financial global issues, there has been volatility and MTM gain came. So as these forwards and futures are settled in next two quarters, that would also reverse. So these are the two one-timers which are likely to reverse in quarter 2 and quarter 3 mostly. But overall margin performance was quite satisfying.

Sometimes this is becoming very difficult, but we always track buyer growth very closely because that's the metric which gives us confidence that sentiment is strong and people are coming out to make purchases, and that's a volume indicator for the business. Gold high prices are keeping buyer growth very muted, sometimes a very small negative. So it is all ticket-led growth on gold prices. In studded, we are finding sub one lakh is growing well and high price points are growing well, but in between we find a little lack of sentiment. Overall while gold remains strong as adornment and investment option for buyers, it's the same buyers. No new buyers are coming in, or they are making purchases only for wedding-led purchases. Otherwise people are trying to time and defer their purchases. Overall volume for the industry has also come down. We will have to wait and watch how the gold price volatility settles down, which is not happening because the global environment keeps financial and commodity markets in turmoil.