Titan Company Ltd. announced its results today for the quarter and half year ended 30th September 2023
TITAN RECORDS STRONG GROWTH OF 21% IN Q2 FY2023-24
3rd November 2023
In Q2FY24, Titan (Standalone) saw a 21% income growth, with a 9% increase in Profit Before Tax (PBT) at ₹1,261 crores. The Jewellery segment’s total income was ₹8,575 crores, up 19%, driven by strong growth in India. Tanishq expanded into Qatar, while Zoya entered Gujarat. Watches & Wearables achieved total income of ₹1,092 crores, a 32% increase, crossing ₹71,000 crores in quarterly revenue for the first time. EyeCare’s total income reached ₹188 crores, up 13%, with new luxury frames and smart glasses introductions. Emerging Businesses earned ₹193 crores, led by Taneira’s 64% growth. Key subsidiaries, CaratLane and Titan Engineering, also reported positive results. Overall, Titan’s consumer businesses are performing well, with a focus on differentiation and market share growth
Quarterly Business Performance:
Titan (Standalone) recorded an income growth of 21% in Q2FY24 compared to Q2FY23. The corresponding PBT at ₹ 1,261 crores was higher by 9% compared to ₹ 1,155 crores achieved in Q2FY23.
Total Income of ₹ 8,575 crores recorded an increase of 19% compared to Q2FY23. The India business grew by 21% in the same period led by ‘Festival of Diamonds‘ (studded activation), Tales of Mystique collection, Rivaah X Tarun Tahiliani collection and well accompanied by regional campaigns. The Business witnessed healthy double-digit growths in both buyers and average bill value per buyer during this period. EBIT came in at ₹ 1,206 crores clocking an EBIT margin of 14.1% for Q2FY24 helped by better studded share in the portfolio.
Tanishq expanded its presence in Gulf Co-operation Countries (GCC) to enter Qatar with 2 new stores in Doha. Tanishq’s international presence now stands at 10 stores including the one store in New Jersey, USA. Zoya entered the state of Gujarat by opening its first store at Palladium mall, Ahmedabad during the quarter. With this expansion, the niche luxury jewellery brand is now present in 8 stores spread across the cities of Mumbai, New Delhi, Bengaluru, Gurgaon, Hyderabad, and Ahmedabad.
Watches & Wearables:
Business recorded a Total Income of ₹ 1,092 crores, up by 32% compared to Q2FY23 crossing 71,000+ crores of quarterly Revenues for the first time in its journey. Analog watches Revenues of ₹ 870 crores grew by 22% compared to Q2FY23 whereas the Wearables portfolio achieved Revenues of ₹ 175 crores growing by 131% in the same period. Premiumization theme continued to work well for Titan and International brands (Helios) exhibiting strong double digit growths in the analog segment. In Wearables, Fastrack brand nearly quadrupled in volumes contributing a significant share to the growth in Business. EBIT came in at ₹ 160 crores with an EBIT margin of 14.7% for Q2FY24.
Total Income of ₹ 188 crores in Q2FY24 was up by 13% compared to Q2FY23. Titan Eye+ introduced ‘Zefr’, a new brand of luxury frames during the quarter. The frames, made in France, are light as a gentle breeze signifying meaningful innovation with impactful designs and standing as a testimony to true engineered luxury. Titan EyeX 2.0 and Fastrack vibes 2.0, two exciting introductions in Gen2 smart glasses with enhanced audio and music capabilities were successfully launched in this period. EBIT for the business came in at ₹ 28 crores clocking a margin of 14.9% for the quarter.
Total Income of ₹ 193 crores for the Emerging Businesses comprising of Fragrances, Fashion Accessories (F&FA) and Indian Dress Wear (Taneira) for Q2FY24 grew by 27% compared to the same period last year. The F&FA business grew by 4% compared to Q2FY23. In sub- segments, Fragrances grew 12% and Women‘s Bags, led by ‘IRTH’ brand, clocked a healthy 31% growth compared to Q2FY23. The other fashion accessories business comprising of belts and wallets however was lower by 40% during this same period.
Taneira’s business grew by 64% compared to Q2FY23 driven by festive collections and campaigns around Onam, Varamahalakshmi, Ganesh Chaturthi, Raksha Bandhan and Teej, actively promoted on digital platforms. The ‘Pujo’ collection, a range of ‘Lal Paars’, spanning various clusters, crafts, and price points was launched during the quarter. The ‘Taneira Saree Run’ initiative attracted over 5k participants in the city of Bengaluru.
The Emerging Businesses together recorded a loss of ₹ 24 crores for Q2FY24.
Key Subsidiaries of the Company:
CaratLane Trading Private Limited: Total Income grew by 45% to ₹ 650 crores as compared to Q2FY23. ‘Switch’, CaratLane’s first convertible jewellery collection was launched targeting customers with a love for versatile designs that match their dynamic styling. The brand rolled out a ‘Request-In-Store’ feature during the quarter aimed at deepening the customer omni-channel experience. EBIT came in at ₹ 26 crores for Q2FY24 clocking a margin of 4%.
Titan Engineering & Automation Limited: The Business recorded a Total Income of ₹125 crores in Q2FY24, a growth of 2% compared to Q2FY23. The Automation Solutions order flow for the quarter nearly tripled compared to the same period last year resulting in a closing order book position of more than ₹ 600 crores at the end of Q2FY24. EBIT for the quarter was R20 crores at a margin of 16%.
Commenting on the results, Mr. C K Venkataraman, Managing Director of the Company stated that: “All our consumer businesses achieved healthy growth for the quarter. The Watches and Wearables business crossed quarterly revenues of ₹ 1,000+ crores, an important milestone in their journey. Jewellery business continued to shine well growing nearly 27% in consumer sales over last year. The store expansions in key markets are progressing well. We retain our focus on improving market share by offering differentiated products to our consumers touching their everyday lives in a meaningful way. The festive season in Q3 has started well and we are optimistic for our performance in the rest of the financial year.
The earnings conference call is scheduled on November 3, 2023 at 3:30 PM. The call details are available at https://www.titancompany.in/investors/investor relations/quarterly-results
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 EveCare. Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances (SKINN), accessories and Jndian 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.