Titan expects revenue growth of up to 20% for its jewellery business in the coming financial year, fueled by strong demand from affluent Indian consumers. However, the company also warned of potential risks to its profit margins due to rising gold prices.
Despite higher gold prices, wealthy Indians continue to buy gold jewellery for weddings and as an investment, while the middle class has become more cautious with discretionary spending. Titan’s jewellery segment, which contributes nearly 90% of the company’s total revenue, is expected to grow at a rate in the mid-teens to 20% in the year starting April 1. This follows a 20.2% growth last year and a 20.4% increase in the nine months ending December 31.
Ashok Sonthalia, Titan’s Chief Financial Officer, noted that the company’s main customer base—affluent Indians—remains largely unaffected by inflation and higher interest rates, helping to drive continued demand for its products.
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