Tanishq bets on resilient gold demand to drive growth
Key takeaways
- Add ARY News on Google AAResize India’s Titan on Friday forecast up to 20% annual revenue expansion over the next five years, as the country’s top jeweller by sales banks on resilient demand for gold.
- “(Near term), 15% to 20% (revenue growth) is something that we ought to do.
- However, rising gold prices due to macroeconomic and geopolitical uncertainty have increased costs for the sector, with Titan reporting a 46-basis-point hit to profit margin, which was at 5.8% in the fourth quarter.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize India’s Titan on Friday forecast up to 20% annual revenue expansion over the next five years, as the country’s top jeweller by sales banks on resilient demand for gold. Large jewellery groups in India are benefiting from a rising affluent population, with branded chains, including Kalyan Jewellers and Titan’s Tanishq, gaining share from independent stores.
“(Near term), 15% to 20% (revenue growth) is something that we ought to do. If we don’t do that much, we won’t be doing justice,” Ajoy Chawla, Titan managing director, told analysts, citing the strength of large chains and India’s consumption growth.
However, rising gold prices due to macroeconomic and geopolitical uncertainty have increased costs for the sector, with Titan reporting a 46-basis-point hit to profit margin, which was at 5.8% in the fourth quarter.