TITAN GROWS 22% IN Q4FY24, CLOCKS 23% GROWTH FOR FULL YEAR FY24
4th May 2024
Titan (Consolidated) recorded an income growth of 22% in Q4FY24 compared to Q4FY23. EBIT grew by 10% YoY to INR 1,192 crores, whereas PBT was flat at INR 991 crores that included financial costs of CaratLane acquisition and ESOP related costs.
Titan Company Limited, India’s leading consumer lifestyle Company, announced its results today for the quarter and year ended 31st March 2024
Total Income for FY24 at INR 47,501 crores grew 23% over FY23. The corresponding PBT grew 4% to INR 4,623 crores.
Business Performance:
Jewellery: Total Income for the quarter grew 19% over Q4FY23 to INR 8,998 crores. The India business grew 20% in the same period. EBIT at INR 1,089 crores recorded a margin of 12.1% for the quarter. For the full year, Division recorded a Total Income growth of 20% to INR 38,353 crores. The corresponding EBIT was INR 4,726 crores at a margin of 12.3% for FY24.
The ‘Festival of Diamonds’ campaign encouraged women to celebrate the micro moments enriching their everyday lives and Tanishq diamonds as a right fit for their needs . The ‘When it Rings True’ and ‘Ethereal Wonders’ campaigns were aimed towards forging new partnerships in life. Mia launched ‘SarangHearts’, an ode to K-pop and K-drama fans consisting of beautiful pendant and earring sets in ‘Korean Hearts’ symbol. Mia X RCB was the principal sponsor of RCB, the victorious women’s team in IPL 2024.
Tanishq expanded its international presence adding a new store in Dubai and Chicago, USA taking the Titan’s Jewellery international footprint to 16 stores. During the quarter, Tanishq opened 11 new stores in India; Mia added 16 new stores.
Watches & Wearables: Business recorded a Total Income of INR 940 crores, up 8% over Q4FY23. The domestic business grew 9% in the same period. EBIT came in at INR 80 crores clocking a margin of 8.5% for the quarter. For the full year, Division recorded a Total Income growth of 18% to INR 3,904 crores. The corresponding EBITwas INR 397 crores at a margin of 10.2% for FY24.
Analog watches Revenues grew 9% YoY to INR 787 crores driven by premiumisation and higher average price realisations. Wearables Revenues grew 3% YoY whilst doubling in volumes compared to the same period last year. The premiumisation journey continued to see good traction in Titan and Helios. The international brands analog sales saw growths of 22% YoY in Revenue assisted by 13% YoY growth in volumes.
Titan launched its new analog collections of ‘Ceramic Fusion Automatics’ and ‘Classique Slim Multifunction’ during the quarter. Raga’s showstopper collections consisted of 4 adorable clusters adding suitable bling touches to match various consumer styles.
During the quarter, 10 new stores were added in Titan World, 14 stores in Helios and 20 stores in Fastrack.
EyeCare: Total Income of INR 166 crores in Q4FY24 was flat compared to Q4FY23. Business recorded an EBIT of INR 8 crores clocking a margin of 4.8% for the quarter. For the full year, the EyeCare Division recorded a Total Income growth of 5% to INR 724 crores. The corresponding EBIT at INR 85 crores recorded a margin of 11.7% for the full year.
Titan Eye+ launched its meticulously crafted ‘Affordable Fashion’ products showcasing an extensive variety of affordable frames paired with Blue Safe Lenses within everyone’s reach during the quarter. The new products redefine the standards of stylish eyewear, ensuring that chic and trendy designs are accessible to all.
During the quarter, Titan Eye+ opened 1 new store in Dubai and converted 5 Fastrack eyewear stores to Titan Eye+ in the domestic market.
Emerging Businesses: The Emerging Businesses comprising of Indian Dress Wear (‘Taneira’), Fragrances, Fashion Accessories (F&FA) recorded a Total Income of INR 97 crores for Q4FY24 growing 26% over Q4FY23. The Businesses together recorded a loss of INR 22 crores for Q4FY24. For the full year, the Total Income grew 28% to INR 378 crores. The corresponding EBIT loss was INR 93 crores for FY24.
Taneira’s sales grew 36% compared to Q4FY23. ‘The brand’s 5th edition of the Taneira Saree Run in Hyderabad saw more than 4,200 saree enthusiasts embracing the saree as a garment of liberation. Continuing with the efforts to preserve the weaving craft and uplift working conditions of the weavers, Taniera launched 8 Weavershalas in Q4 taking the total tally to 18 Weavershalas across the country. The brand opened 11 new stores during the quarter, taking the total store count to 73 stores covering 37 cities.
The F&FA business grew 13% compared to Q4FY23. In key sub-segments, Fragrances grew by 9% and Women’s Bags clocked 97% growth respectively (on a small base over Q4FY23).
Key Subsidiaries of the Company:
Caratlane Trading Private Limited: Total Income grew 29% to INR 748 crores as compared to Q4FY23. EBIT came in at INR 52 crores for Q4FY23 clocking a margin of 6.9%. For the full year, Total Income grew 34% to INR 2,930 crores. The corresponding EBIT at INR 195 crores recorded a margin of 6.7% for FY24.
In the Valentine season, brand launched ‘Postcards, by Caratlane’, the world’s first ever service letting users record heartfelt video messages and embed them into any Caratlane ring.
Caratlane added 10 new stores (net) in the quarter taking the total store count to 272 stores spread across 110 cities pan-India.
Titan Engineering & Automation Limited: The Business recorded a Total Income of INR 373 crores in Q4FY24, a growth of 114% compared to Q4FY23. EBIT for the quarter was INR 4 crores at a margin of 17.2%.
For the full year, Division recorded an income growth of 49% to INR 760 crores. The corresponding EBIT was INR 98 crores at a margin of 12.9% for FY24.
The Automation Solutions (AS) business grew 181% and the Manufacturing Services grew 33% compared to their respective Revenues of Q4FY23. The AS business ended the quarter with a closing order book of more than INR 500 crores.
Commenting on the results,
Mr. CK Venkataraman, Managing Director of the Company stated that:
“FY24 was yet another satisfying year for Titan. Our Jewellery business continued to grow in prominence achieving a proud milestone of INR 40,000+ crores in consumer sales. Together our brands of Tanishq, Mia, Zaya and Caratlane are meaningfully innovating and offering the best variety of choices for the discerning woman of tomorrow. Our Wearables business is making good strides contributing to the ambitious growth targets that the business has embarked upon. The EyeCare business has re-calibrated itself in this year of consolidation and has launched exciting new product launches for the fashion-conscious youth . Taniera’s expansions are gathering pace, and their stores are accessible across the length and breadth of the country. Through their ‘Weavershalas’ initiative, the brand is assiduously striving to protect traditional heirloom methodologies whilst embracing modernity practices.
As we look forward to FY25, all businesses ofTitan Company Limited are single-mindedly continuing to focus on satisfying the ever-evolving needs of our lifestyle consumers .”
About Titan:
Titan Company Limited (“Titan”), a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO), commenced its operations in 1987 under the name Titan Watches Limited. In 1994, Titan diversified into Jewellery (Tanishq) and subsequently into EyeCare. Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances (SKINN), accessories and Indian dress wear (Taneira) and thoughtfully designed Women Bags (IRTH). Titan is widely known for transforming the watch and jewellery industry in India and for shaping India’s retail market by pioneering experiential retail.
