Shares of Titan Company, Tata's watch and jewellery arm, slumped nearly 11 percent in the morning trade on Tuesday after the company said that its April-June quarter revenue was hit by low consumption as a result of rising gold prices.
The sentiment was also hit after rating downgrades by Morgan Stanley and Credit Suisse, said a CNBC-TV18 report.
The stock fell as much as 10.8 percent to Rs 1,116.20 per share on the BSE.https://t.co/H64S9eFTpE
— CNBC-TV18 News (@CNBCTV18News) July 9, 2019
The stock reportedly touched a low of Rs 1,116.20 on the BSE, down 10.8 percent, its biggest slide since June 2013. At 10.13 am, the scrip traded at Rs 1091.40. The stock was down for the fourth consecutive session on Tuesday, having declined 18 percent during the period.
Titan's revenue rose a muted 13 percent in June quarter as sharp increases in gold prices hit consumer demand last month, said a report in Mint.
In June, the global gold prices rose 8 percent month-on-month which analysts believe that hurt consumer demand for the precious metal, the report said.
Titan reportedly witnessed a tough macro-economic environment and a weak consumption during the April-June quarter on the back of rising gold prices, said a report in The Economic Times.
The report further said that revenue in the jewellery division (Tanishq) saw a muted 13 percent growth too in the first quarter as a sharp increase in gold prices dented consumer demand significantly.
The Tata Group firm had posted a 14.41 percent increase in consolidated net profit at Rs 348.30 crore for the fourth quarter of 2018-19. The company had reported a net profit of Rs 304.41 crore for the corresponding period of the 2017-18 financial year, said a PTI report.
— With PTI inputs
Updated Date: Jul 09, 2019 13:11:25 IST