Bengaluru: Watches and accessories maker Titan Co. Ltd reported a near 31%rise in its net profit for the quarter ended 30 June on increased demand and sales of all key product categories—jewellery, watches and eyewear. Titan’s standalone profit for the June quarter rose to 349.17 crore from 266.91 crore in the year-ago period. Revenue for the quarter grew 7.40% to 4,354.52 crore.

“This has been a great quarter for us recording a growth of over 31% in PBT (profit before tax). All our core businesses have shown a healthy growth in profit in addition to market share gains," said Bhaskar Bhat, managing director, Titan.

In the quarter, Titan’s growth was mainly driven by strong profits from its jewellery business. The company’s jewellery products, sold mostly under the brand name Tanishq, typically rake in around 80% of total revenue. Revenue from the division grew 5.65% to 3,571.66 crore during the first quarter, even as profits from jewellery sales increased 16.12% to 393.38 crore.

“The jewellery industry went through a soft patch in the first quarter with decline in imports of gold by 39%. Despite the single digit revenue growth of our jewellery business in Q1, the profits grew by a healthy 16%," Bhat said.

After the Nirav Modi-Mehul Choksi scandal tainted the jewellery sector in India in February, the entire spectrum, from small and medium jewellers to listed chains, had been severely impacted. But the Tata Group-owned Titan stood to gain from that fallout as it was perceived to be a more trustworthy brand by analysts and consumers alike.

In June, Titan said it had already begun to see an uptick in the number of new customers, especially high-net worth individuals (HNIs), besides an increase in the average bill size of first-time buyers.

The company’s confidence in the growth opportunity for its jewellery business even prompted it to set ambitious targets for the division by 2022-23. In its annual report, Titan said it expects the jewellery division to fetch 40,000 crore out its overall revenue target of 0,000 crore by 2022-23.

Both the watches and eyewear business divisions also propped up Titan’s performance in the first quarter of 2018-19. Revenue from the watches business grew 14.86% to Rs593.52 crore, while eyewear revenue grew 16.43% to Rs131.57 crore.

“The company has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters," said Bhat.