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India's Titan reports a 25% increase in revenue for the fourth quarter due to surging gold prices

Titan Company, an Indian jeweller and timepiece maker, said Monday that it expects to see a 25% rise in its fourth quarter revenue. This represents a higher growth rate than the same period last year, thanks to the rising gold price.

Gold's price has increased by about 15% in the past year. This is due to the escalating geopolitical risks and uncertainty over U.S. Tariff policy. It is seen as an insurance against these risks.

Even though the gold price has risen, Indians of affluence have continued to spend lavishly on wedding ornaments and gold as an investment. This is despite middle-class Indians cutting back on their discretionary spending.

In a filing with the Securities and Exchange Commission, Titan said that its jewellery division, which represents about 90% of the total revenue, is dominated by plain gold coins and jewellery, reflecting the strong preference consumers have for this precious metal.

Sales of gold coins and plain jewellery are expected to be up 65% and 27% respectively.

Titan's revenues grew by 17% last year in the fourth quarter. The company also saw an increase of 19% in its domestic jewellery business.

The company's watches division, which represents 7% of its total revenue, and includes brands such as Fastrack and Sonata products, has reportedly grown by 22%. (Reporting from Shivani Tanna, Bengaluru. Editing by Vijay Kishore.)

(source: Reuters)