Stock Report

Titan Company Limited - Quarterly Update - Q3FY23

Posted On : 2023-01-06 20:51:28( TIMEZONE : IST )

The healthy consumer demand spurred by a vibrant festive season resulted in ~12% growth in combined sales YoY across Company's standalone businesses. The positive consumer sentiment helped all categories clock healthy double digit growths despite a high base in the same period of last year. Continuing the network expansion (net), the retail presence stands at 2,362 stores as at the end of the quarter.

Jewellery:

Healthy new buyer growths in the festive period, higher value purchases in the studded category and unique new collections for the season helped the Division achieve a ~11% growth YoY (excluding bullion sales). The sales from studded category moderately outpaced gold jewellery (plain) segment growth compared to the same period last year. Wedding sales grew in-line with the Division's overall sales. Tanishq opened its first international boutique store in USA, New Jersey in December 2022. With this store opening, the international presence now spans 6 stores across Dubai, Abu Dhabi and USA. The new store expansion (net) for the quarter consisted of 8 stores in Tanishq and 14 in Mia by Tanishq.

Watches & Wearables:

Division's ~14% growth YoY was led by strong traction in the wearables space. A slew of exciting product launches in the fiscal year leading to the festive season contributed well to more than tripling sales from the wearables sub-segment in the quarter compared to same period last year. The analog watches segment too saw multiple product launches like Edge Squircle, Titan Quartet and new range of mechanical watches for men and Raga Delight watches. Targeted campaigns and activations and the desire to own more premium / differentiated watches helped in good consumer demand for key brands in the portfolio. The Division had also initiated a retail store transformation journey across Titan World and Helios stores since mid of FY22. In line with the changes, 81 stores have been renovated till now in YTD FY23 offering premium experience to customers. Store expansions pan-India (net) included 24 new store additions of Titan World, 17 of Helios and 7 in Fastrack for the quarter.

EyeCare:

Sales from Titan Eye+ stores and Trade & Distribution channel saw in-line growth with the overall Division. EyeCare expanded its nation-wide presence adding 36 new stores in Titan Eye+ (net) for the quarter.

Emerging Businesses - Fragrances & Fashion Accessories (F&FA), Indian Dress Wear (Taneira):

F&FA grew ~39% YoY driven by ~50% growth in Fragrances and ~21% growth in Fashion Accessories. Amongst key offline channels for F&FA, Trade and Large Format Stores (LFS) grew the fastest, both clocking much higher growths than the overall Division. Division launched the 'IRTH' brand of women handbags during the quarter.

Taneira's sales grew by ~150% YoY driven by new store openings and healthy double digit growth from existing stores. The customer response during the festive season was quite encouraging. The brand opened 5 new stores during the quarter, taking the total store count to 36 covering 17 cities pan-India. Bhubaneshwar, Patna and Gurugram were new city additions in the quarter with a store in each city and 2 stores were opened in the existing cities of Bengaluru and Chennai.

Key Subsidiaries:

Titan Engineering & Automation Limited (Wholly-owned subsidiary) - Business grew ~58% YoY with Automation Solutions Division growing by ~50% YoY and Manufacturing Services Division (earlier called Aerospace and Defense) clocking ~64% growth YoY.

CaratLane (72.3% owned subsidiary) - Business grew ~50% YoY driven by gifting campaigns around the festive season from beginning of Navratri and continuing right till Bhai Dooj to capture consumer buying intent for the period. Studded growth was moderately higher than the overall growth and mix marginally higher than last year contributing to ~75% of the total business.

The above information for the period ended 31st December 2022 is provisional, and subject to Limited Review by the Statutory Auditors of the Company.

Shares of Titan Company Limited was last trading in BSE at Rs. 2536.95 as compared to the previous close of Rs. 2563.10. The total number of shares traded during the day was 41245 in over 4736 trades.

The stock hit an intraday high of Rs. 2584.10 and intraday low of 2517.45. The net turnover during the day was Rs. 104801499.00.