Titan Industries Ltd’s share price fell by 4.5% on Tuesday, a day the BSE-100 index rose by 1.5%, after the firm reported weaker-than-expected results for the quarter ended September. Revenue growth looked robust at 36%, but that was mainly because of a surge in gold prices. Volume growth in the jewellery segment, which accounted for 77% of the total revenue, was disappointing at 3%. The sharp rise in gold prices evidently hurt demand.

On an overall basis, operating profit margin fell by 175 basis points to 9.5% and operating profit increased by 15.4%. Recurring net profit growth was slightly higher at about 20% to 152.9 crore, mainly helped by higher other income.

Since the beginning of this fiscal, the Titan stock has outperformed the BSE-100 index. Investors will now keenly watch out for the performance in the December quarter, as the festival season falls in this period. Fortunately, gold prices have stabilized. But they are still considerably higher year-on-year, so it remains to be seen whether volumes will improve materially compared with the September quarter.