The Tata-group owned watch and jewellery company said that after suffering complete loss of sales in April due to lockdown it started reopening the stores, primarily high street stores, from May 6 onwards in the non-containment areas.
In a stock exchange filing, the company said almost all manufacturing operations have commenced operations.
“However, 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,” Titan said.
It added that some of the stores that were in the work-in-progress (WIP) stage before the lockdown are now getting completed at a slow pace with limited labor availability.
The company extended financial support to its franchisees and vendors, particularly by providing soft loans at extremely low interest rates.
Titan said there will be discretionary cuts on various expense heads due to the lower level of activity this year, and added it has been able to negotiate 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 June 30, Titan said it is in a net cash surplus status, largely due to sale of excess inventory in the form of gold to the commodity exchange and certain vendors.
Since the markets and channels are opening up in a phased manner, the company kept the launches very tight and postponed the launch of collections to Q2.
Titan said its jewellery division revenues in May and June were at slightly below 20 per cent and around 70 per cent compared to the corresponding months of the previous year. The division also sold gold in the bullion market worth Rs 610 crore at market rates to optimize the inventory levels.
While the jewellery division has re-opened around 95 per cent of its Tanishq stores till date, it said the operations of stores tends to get disrupted as and when local governments enforce lockdowns.
In its watches and wearables division, revenue in May and June months were at 5 per cent and marginally over 20 per cent compared to the corresponding months of the previous year.
For its eyewear division, the revenue in May and June months were at 15 per cent and 35 per cent compared to the corresponding months of the previous year.
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