Titan Company published a quarterly update yesterday and looks like it has weathered the storm, with things starting to look up from H2FY17 and now in FY18. The market is happy and the stock price hit a record high today morning at Rs.486.50.

The company has said that H2FY17 performance has exceeded expectations despite demonetization and consumer sentiments have improved in Q4FY17, with the company clocking in good sales. The success in Q4 is largely led by the studded jewellery section. During Fy17, the company opened 16 new Tanishq stores.

The company expects its Gross margins from jewellery to be good in Q4. It said that enrolments and redemptions in the Golden Harvest Scheme were also on track.

The watches unit is finally showing some signs of pickup and it too had a good Q4. Exports and OEMs business within Titan watches continues to suffer. The company said a revival in the demand for sunglasses turned around overall sales at its eyewear division while closure of 12 Spexx stores dampened top line growth to some extent.

The bottomline – the company is optimistic about revenue growth in FY18 but higher GST rate for jewellery could hit the growth.