Titan yesterday presented the quarterly update for Q1FY21.

Highlights of this update:

• In jewellery: Revenue in May and June months were at slightly below 20% and around 70% compared to the corresponding months of the previous year. It sold gold in the bullion market worth INR 610 cr. at market rates to optimize the inventory levels.
• Watches & Wearables:  Revenue in May and June months were at 5% and marginally over 20% compared to the corresponding months of the previous year.
• Eye Wear:  Revenue in May and June months were at 15% and 35% (YoY). It closed 15 stores during the quarter, on net basis, ending up with a reduction of about 8K sq. feet of retail space.
• After complete loss of sales in April due to lockdown, shops in high street were opened, from 6th May onwards in the non-containment areas.
• Many malls have also received the permission to operate and those mall stores have also been opened.
• As at the end of June 2020, the company has re-opened around 83% of its stores across all businesses.
• Almost all manufacturing operations have commenced operations.
• Production levels are low now, given the inventory situation and will be ramped up only gradually when the company sees sales picking up to normal levels.
• It has extended financial support to its franchisees and vendors, particularly by providing soft loans at extremely low interest rates.
• Major cost cutting exercise on; negotiated fairly significant rental waivers and reductions for the period of disruption and for the next quarter with landlords, both high street and mall owners.
• As on 30th June 2020, the company is in a net cash surplus status thanks largely to sale of excess inventory in the form of gold to the commodity exchange and certain vendors.

The stock price seems to be moving as per the market mood for now. Though it opened in the green, up over 1% at Rs.1028, it soon fell 1.5% to Rs.1001.55 and currently remains around these levels.