Titan Q3 Update: Revenue Rises 12% On Festive Demand
Positive consumer sentiment helped all categories clock healthy double-digit growths, says the Tata Group firm.
Sales at Titan Co. grew in the quarter ended December buoyed by healthy consumer demand during the festive season across all its businesses.
Revenue of India’s largest branded jewellery maker rose 12% year-on-year in the three-month period, according to its quarterly update released on the bourses on Friday.
"The positive consumer sentiment helped all categories clock healthy double-digit growths despite a high base in the same period of last year," the Tata Group firm said.
Its mainstay jewellery business grew 11% over the previous year, eyecare division grew 10%, while the watches and wearables arm grew 14%.
However, sales slowed sequentially even as revenue from jewellery business grew 21.7%, followed by watches and wearables arm at 20.46%, and eyecare at 4.37%.
Titan's other's businesses, which includes fragrances, fashion accessories and ethnic wear brand Taneira, grew 75%, according to the company.
It added 111 stores across its consumer businesses to take the total count to 2,362, as on Dec. 31.
Jewellery
Healthy new buyer growth in the festive period, higher value purchases in the studded category aided sales.
Sales from the studded category moderately outpaced gold jewellery segment growth compared to the same period last year.
Its jewellery brand Tanishq opened its first international boutique store in New Jersey, USA, in December 2022. With this, its global presence now spans six stores across Dubai, Abu Dhabi and the U.S.
The new store expansion (net) for the quarter consisted of eight stores in Tanishq and 14 in Mia by Tanishq.
Watches And Wearables
Strong traction in the wearables space drove sales growth.
A slew of product launches in the fiscal leading to the festive season contributed to more than tripling sales from the wearables sub-segment in the quarter compared to the same period last year.
The analog watches segment, too, saw multiple product launches like Edge Squircle, Titan Quartet, a new range of mechanical watches for men and Raga Delight watches.
Targeted campaigns and activations and the desire to own premium and differentiated watches helped in good consumer demand for key brands in the portfolio.
Store expansions pan-India (net) included 24 new store additions of Titan World, 17 of Helios and seven in Fastrack for the quarter.
Eyecare
Sales from Titan Eye+ stores, and trade and distribution channel saw in-line growth with the overall division.
Eyecare expanded its presence adding 36 new Titan Eye+ stores in Q3.
Other Business
Fragrances and fashion accessories grew 39% year-on-year, driven by 50% growth in fragrances and 21% growth in fashion accessories.
Among key offline channels for fragrances and fashion accessories, trade and large-format stores grew the fastest, clocking much higher growths than the overall division.
The division launched the ‘IRTH’ brand of women's handbags in Q3.
Taneira’s sales grew by 150% over last year, driven by new store openings and healthy double-digit growth from existing stores.
Customer response during the festive season was encouraging.
The brand opened five 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 two stores were opened in the existing cities of Bengaluru and Chennai.
Among its key subsidiaries, revenue of Titan Engineering and Automation Ltd. grew 58% over the previous year, while CaratLane's revenue rose 50%.
"CaratLane's sales were 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," the company said.
Studded growth was moderately higher than the overall growth and mix marginally higher than last year contributing to 75% of the total business.
Shares of Titan Co. closed 1.02% lower on Friday before the update was released, as compared with a flat benchmark Nifty50.