Bengaluru, August 2, 2024: Titan Company Limited (“Titan”), announced its results today for the first quarter ended June 30, 2024.
Quarterly Financial Highlights:
Titan (Consolidated) recorded an income of Rs. 12,386 crores growing by 12% in Q1FY25 compared to Q1 FY24. The PBT was lower by 3% at Rs. 973 Cr compared to Q1 FY24 due to financial costs of CaratLane acquisition (acquisition costs were not part of the base quarter)
Business Performance (Standalone):
Jewellery: Total Income for the quarter grew 9% over Q1 FY24 to Rs. 9,879 crores. The India business grew 8% in the same period. EBIT at Rs. 1,103 crores came at a margin of 11.2% for the quarter.
The first six weeks of the quarter that included Akshaya Tritiya saw 20% retail growth. Q1 saw multiple forces coming together that impacted the topline. A steep rally in gold rates (20% increase over Q1 FY24), election led restrictions in many markets, very few wedding dates and an unprecedented heat wave across the country? weighed on overall consumer demand. Tanishq launched it ‘Enchanted Trails’ diamond collection at the Paris Haute Couture Week, Fall- Winter 2024-25 during the quarter.
Tanishq expanded its international presence adding a new store in Muscat, Oman taking Titan's Jewellery international footprint to 17 stores. During the quarter, in India, Tanishq opened 11 new stores (net), Mia added 19 and Zoya added 3 stores respectively. Zoya opened its first store in the cities of Chennai and Pune.
Watches and Wearables: Business recorded a Total Income of Rs. 1,021 crores, up 15% over Q1 FY24. The domestic business grew 14% in the same period. EBIT came in at Rs. 115 crores clocking a margin of 11.3% for the quarter.
Analog segment recorded a strong 17% Revenue growth? over Q1 FY24? led by Titan, Fastrack and Sonata brands. In key channels, Titan World grew 13% over Q1 FY24 (9% like-to-like growth) in consumer sales despite heatwave disruptions in this period. E-com consumer sales also recorded strong double-digit growths compared to Q1 FY24. While volumes in Wearables segment clocked healthy double-digit growths, the average selling prices continued to decline leading to a 6% drop in Revenue compared to Q1 FY24.
Titan launched its new analog collections of ‘Aura’ during the quarter. The Edge ‘Allure’ collection featured mother-of-pearl dial for the first time in the product.
During the quarter, a total of 17 new stores (net) were added across the network comprising of 5 new stores in Titan World, 5 in Helios and 7 in Fastrack respectively.
EyeCare: Total Income of Rs. 209 crores in Q1FY25 grew 3% over Q1 FY24. Business recorded an EBIT of Rs. 20 crores clocking a margin of 9.6% for the quarter.
Titan Eye+’s affordable fashion products range drove 10% volume growth for the Division compared to Q1 FY24. Volumes from both House Brands and Others grew 10% and 13% respectively over Q1 FY24. The Revenue growth via Titan Eye+ retail channel came in at 10% in the same period. Division launched exciting new products in ‘Memory Flex’ (consisting of shape memory alloy material), ‘Titan Initia Progressive’ (affordable freeform progressive lens), ‘MyoSlo’ (for managing progressive myopia) and High On Fashion (‘HOF’) sunglasses during the quarter.
'Runway', Titan's first exclusive store offering premium sunglasses for the discerning customers, was launched in Jun-24 at Indiranagar, Bengaluru. Including this store addition, 3 new Titan Eye+ stores (net) were opened in Q1FY25.
Emerging Businesses: The Emerging Businesses comprising of Indian Dress Wear (‘Taneira’), Fragrances, Fashion Accessories (F&FA) recorded a Total Income of Rs. 80 crores for Q1FY25 growing 5% over Q1 FY24 (excluding the discontinued belts and wallets sub-segment, comparable growth was 13% over Q1 FY24). The Businesses together recorded a loss of Rs. 26 crores for the quarter.
Taneira’s sales grew 4% compared to Q1 FY24 mainly driven by growth from new stores. Three new summer collections, i.e. 'Cottons of India', ‘Summer Blooms’ and ‘Summer Silks’ were introduced during the quarter. Adding to the allure of summer fashion, Taneira also introduced its range of ready-to-wear kurtas, tops, and dresses, perfect for creating a breezy and chic summer ensemble, with effortless style and comfort. The brand opened 4 new stores during the quarter (one each in the new cities of Jodhpur and Nashik), taking the total store count to 77 stores covering 39 cities?.
The F&FA business grew 1% compared to Q1 FY24 (excluding the discontinued belts and wallets sub-segment, comparable growth was 16% over Q1 FY24). In key sub-segments, SKINN Fragrances grew by 10% propelled by increase in average selling prices. Women’s Bags (in Fashion Accessories) comprising of IRTH and Fastrack clocked healthy double-digit growths for the quarter (over a small base of Q1 FY24).
International Business Performance (Consolidated):
The International Jewellery business recorded a growth of 92% to Rs. 350 crores compared to Q1 FY24. In the preceding 12 months, 8 new Tanishq stores have opened in various geographies. These include 4 stores in GCC region, 3 stores in North America and 1 store in Singapore.? The GCC region (11 stores) witnessed a healthy Revenue growth of ~80% in the Jewellery segment during Q1FY25?. Tanishq's new stores in the North American markets of Chicago, Dallas and Houston have seen encouraging response from the Indian diaspora since their launch (the stores opened between Dec'23 – Mar'24). During the quarter, Tanishq opened a new store in Muscat, Oman. The total Jewellery international footprint stands at 17 stores consisting of 16 Tanishq stores and 1 Mia store?
Key Subsidiaries of the Company:
CaratLane Trading Private Limited: Total Income grew 30% to Rs. 832 crores compared to Q1 FY24 (excluding digi-gold sales, comparable growth was 18% in the same period). EBIT came in at Rs. 38 crores for Q1FY25 clocking a margin of 5.1%. In the Akshaya Tritiya season, the brand focused on launching new and unique designs like “Utsav” and capsule collection called “Dancing Hoops”. Both launches received a good initial response from customers?. CaratLane added 3 new stores (net) in the quarter taking the total store count to 275 stores spread across 112 cities pan-India?.
Titan Engineering and Automation Limited: The Business recorded a Total Income of Rs. 197 crores in Q1FY25, a growth of 223% compared to Q1 FY24. EBIT for the quarter was Rs. 11 crores at a margin of 5.8%.
The Automation Solutions (AS) business grew 12 times (on a low Revenue base of Q1 FY24) and the Manufacturing Services recorded a growth of 55% over Q1 FY24. The AS business ended the quarter with a closing order book of more than Rs. 450 crores.
Commenting on the recent developments and the quarterly performance,
Mr. C K Venkataraman, Managing Director of the Company stated that:
“In the recently presented Union Budget, the custom duty on gold imports in the country has been reduced from 15% to 6%. This development has long term positive implications for the Jewellery industry. While this change is likely to entail a short-term impact in the form of value loss on duty paid gold inventory (expected to be expensed over the next two quarters), we remain optimistic on the longer-term benefits as it makes the market equitable for large businesses like ours.?
?Our first quarter performance reflects mixed consumer trends in lifestyle categories. While the inclement weather conditions during the summers, general elections and lower wedding days impacted retail walk-ins, the growth metrics in Watches and Wearables and EyeCare were quite healthy. Notwithstanding some of these near-term variations, Titan is steadfastly pursuing market share gains across all business categories and is well equipped to provide a differentiated retail experience to our valued customers. We remain optimistic about our performance for rest of the financial year?.?”
Conference Call: The earnings conference call is scheduled on August 2, 2024, at 6:00 PM. The call details are available at https://www.titancompany.in/investors/investor-relations/quarterly-results
