Titan (Consolidated) Records Growth of 12% in Q1 FY2024-25

Quarterly Financial Highlights:

Note: Total income excludes bullion sales in all periods: Numbers and growth percentages rounded to nearest integers

Business Performance (Standalone)

Jewellery

Total Income for the quarter grew 9% over Q1FY24 to 49,879 crores. The India business grew 8% in the same period. EBIT at 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 Q1FY24), election-led restrictions in many markets, very few wedding dates, and an unprecedented heatwave across the country weighed on overall consumer demand. Tanishq launched its ‘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 & Wearables

The business recorded a Total Income of 1,021 crores, up 15% over Q1FY24. The domestic business grew 14% in the same period. EBIT came in at 115 crores, clocking a margin of 11.3% for the quarter.

The Analog segment recorded a strong 17% Revenue growth over Q1FY24, led by Titan, Fastrack, and Sonata brands. In key channels, Titan World grew 13% over Q1FY24 (9% like-to-like growth) in consumer sales despite heatwave disruptions in this period. E-com consumer sales also recorded strong double-digit growth compared to Q1FY24. While volumes in the Wearables segment clocked healthy double-digit growths, the average selling prices continued to decline, leading to a 6% drop in Revenue compared to Q1FY24.

Titan launched its new analog collections of “Aura” during the quarter. The Edge “Allure” collection featured mother-of-pearl dials for the first time in the product.

During the quarter, a total of 17 new stores (net) were added across the network, comprising 5 new stores in Titan World, 5 in Helios, and 7 in Fastrack respectively.

EyeCare

Total Income of 209 crores in Q1FY25 grew 3% over Q1FY24. The business recorded an EBIT of 20 crores, clocking a margin of 9.6% for the quarter.

Titan Eye’s affordable fashion product range drove 10% volume growth for the Division compared to Q1FY24. Volumes from both House Brands and Others grew 10% and 13% respectively over Q1FY24. The Revenue growth via Titan Eye+ retail channel came in at 10% in the same period. The Division launched exciting new products in “Memory Flex” (consisting of shape memory alloy material), “Titan Initia Progressive” (affordable freeform progressive lens), “MyoSio” (for managing progressive myopia), and “High On Fashion” (HOF) sunglasses during the quarter.

“Runway,” Titan’s first exclusive store offering premium sunglasses for discerning customers, was launched in June 2024 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, and Fashion Accessories (F&FA) recorded a Total Income of 80 crores for Q1FY25, growing 5% over Q1FY24 (excluding the discontinued belts and wallets sub-segment, comparable growth was 13% over Q1FY24). The Businesses together recorded a loss of 26 crores for the quarter.

Taneira’s sales grew 4% compared to Q1FY24, 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 Q1FY24 (excluding the discontinued belts and wallets sub-segment, comparable growth was 16% over Q1FY24). In key sub-segments, SKINN Fragrances grew by 10%, propelled by an increase in average selling prices. Women’s Bags (in Fashion Accessories), comprising IRTH and Fastrack, clocked healthy double-digit growth for the quarter (over a small base of Q1FY24).

International Business Performance (Consolidated)

The International Jewellery business recorded a growth of 92% to 350 crores compared to Q1FY24. In the preceding 12 months, 8 new Tanishq stores have opened in various geographies. These include 4 stores in the 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 an 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 832 crores compared to Q1FY24 (excluding digi-gold sales, comparable growth was 18% in the same period). EBIT came in at 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 a 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 & Automation Limited

The business recorded a Total Income of 197 crores in Q1FY25, a growth of 223% compared to Q1FY24. EBIT for the quarter was 11 crores at a margin of 5.8%.

The Automation Solutions (A5) business grew 12 times (on a low Revenue base of Q1FY24) and the Manufacturing Services recorded a growth of 55% over Q1FY24. The A5 business ended the quarter with a closing order book of more than 450 crores.

Managing Director’s Comments

Commenting on the recent developments and the quarterly performance, Mr. CK 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 about 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 & 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 the rest of the financial year.”

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.