Titan Q1 Update: Sales Jump Threefold On Low Base, Consumption Revival

Sales at Titan Co. rose threefold, aided by a low base and demand revival in the first April-June quarter in three years that wasn't disrupted by the pandemic.

Revenue of India’s largest branded jewellery maker rose 205% year-on-year in the three-month period, according to its quarterly update released on the bourses. It clocked a three-year compounded annual growth of 20.5% over the first quarter of FY20, a pre-Covid period.

Its mainstay jewellery business grew 207% over the previous year, followed by the eye care segment at 176% and watches and wearables arm at 158%.

"Both walk-ins and buyers grew in-line with revenues whereas ticket size marginally improved compared to Q1 FY22," the Tata Group firm said.

It added 120 stores across its consumer businesses to take the total count to 2,160 as of June 30.

Jewellery

• The division had a good start to FY23 with robust sales on the auspicious occasion of Akshaya Tritiya in May.

• Revenues nearly tripled, clocking a year-on-year growth of 207%.

• Growth in plain gold jewellery was nearly three times whereas studded sales was comparatively higher over the previous year. Studded mix was better than last year and comparable to the pre-Covid levels in June quarter.

• Wedding demand growth was slightly lower year-on-year compared to revenue growth but the share in the overall pie continued to be stable.

• Store expansions continued with commissioning of six new domestic outlets and one international store in Dubai for Tanishq and 13 for Mia.

Watches And Wearables

• The division achieved its highest-ever quarterly revenue in Q1 FY23.

• Multi-brand retail, Titan World and large-format stores continued on their growth trajectory from FY22.

• The wedding season worked really well across brands and channels, especially in April and May.

• Wearables growth nearly quintupled on a low base while maintaining the momentum seen in the latter half of FY22.

• It added 26 stores of Titan World and 15 of Helios. The transformation of Titan World, Helios and Fastrack stores to newer formats, offering a wider choice of premium brands, continued with 28 store renovations undertaken.

• Other than network expansion, brand campaigns continued to progress well throughout the quarter.

Eye Care

• The division’s growth of 176% over the previous year was led by both Titan Eye Plus, and trade & distribution.

• It opened 56 stores across Bengaluru, Kolkata and Chennai, taking its total store count to 789. It has set a target of reaching 1,000 Titan Eye Plus outlets pan-India by end of FY23.

Fragrances And Accessories, Taneira

• Growth in trade, large-format stores and e-commerce channels contributed to a 271% yearly increase in sales.

• Fragrances grew at 262%, while fashion accessories grew 293% year-on-year.

• Taneira expanded its presence by adding six stores in the quarter. It opened two in Kolkata, marking its foray into the eastern market; and two each in Bengaluru and Hyderabad.

Among its key subsidiaries, revenue of Titan Engineering & Automation Ltd. grew 35% over last year, while CaratLane's revenue rose 207% on low base.

The automation solutions business order inflow declined in low double digits over a year earlier. The aerospace and defence division, however, more than doubled its order inflow, signalling healthy signs of revival for the sector. "The overall order inflow growth for TEAL was in mid-teens."

With markets opening up after a gap of two years in the April-June period, CaratLane achieved its highest ever sales on the day of Akshaya Tritiya. Sales were 20% higher than Dhanteras of 2021, according to the company.

Corrects an earlier version that misstated the pace of sales growth.