However, the company says it does not have the urgency to begin production in the factory, but bring back the rhythm of the manufacturing unit.
Ajoy Chawla, CEO of the jewellery division at Titan, tells Samreen Ahmad that the company is gearing up to train nearly 25,000 people in Titan's ecosystem in two weeks to restart post-lockdown work.
Titan which sells Tanishq brand gold and diamond jewellery, operates over 350 retail stores across the counter. Apart from that, the company also sells huge quantity of its products online.
Growth in the segment, which accounts for over 80 per cent of the consolidated sales, was robust in January and February, thus leading to a 16.5 per cent growth in revenues.
The management said the company is working out its strategy to manage this crisis with particular focus on ensuring adequate liquidity is available till normalcy returns.
The credit for Titan's success goes to former managing director Bhaskar Bhat, who has won the Business Standard CEO of the Year award for the second time in seven years
The 23-member team of HUG Innovations including its founder Raj Neravati will be part of Titan's Hyderabad development centre
Segment-wise, the Jewellery business recorded a growth of 10.6 per cent in Q3 over last year.
A total of 105 companies, including Bharti Airtel, TVS Motor , and Titan are scheduled to announce their December quarter results
The support for the week is seen at 40,950/12,030 while resistance is seen at 42,260/12,460. Bank Nifty would have a range of 30,580-31,880
Titan said the retail sales in jewellery were better than expected at the beginning of Q3FY20, possibly due to a good wedding season and reasonable inelasticity of wedding jewellery.
Thousands of people held protests against Citizenship Amendment Act (CAA) and National Register of Citizens (NRC) in various parts of the country
Keeping with time, the Tata Group company had piloted this strategy at five of its flagship Bengaluru stores for three months
Analysts believe that market share gains, revenue visibility, margin expansion and return ratios could support valuations
Thus far in CY19, most gems and jewellery stocks have underperformed the market. Stocks such as Goenka Diamond & Jewels and PC Jeweller have slumped up to 61% as compared to 3% rise in the Sensex
Titan cut growth guidance for H2FY20 to 11-13%, from 20%, on account of weak outlook for the jewellery business
Profit before tax (PBT) stood at Rs 429 crore, down 3.7 per cent year-on-year (YoY) and net profit was up just 1.8 per cent YoY to Rs 320 crore.
The Bengaluru-headquartered company had earlier informed the stock exchanges its jewellery business grew 7 per cent in the second quarter of FY20, lower than the expected 12-13 per cent
The company said its jewellery division witnessed a sharp fall in sales after a sudden surge in gold prices dented the consumer demand from mid-June.
With festival season round-the-corner, companies are hoping for a pick-up in the overall consumption, which along with the cut in corporation tax, would aid earnings growth over the next few quarters