TITAN RECORDS REVENUE GROWTH OF 25% IN Q4FY23

3rd May  2023

Titan (Standalone) recorded a revenue growth of 25% in Q4FY23 compared to Q4FY22. The corresponding PBT before exceptional items came in at INR 979 crores, higher by 37%, compared to Q4FY22. The Like-to-like PBT growth for this quarter was 28% (after adjusting for ex-gratia provision in Q4FY22)

Titan Company Limited (“Titan”), India’s leading consumer lifestyle retailer, announced its results today for the quarter and year ended 31” March 2023

Financial Highlights:

Quarterly Business Performance:

Titan (Standalone) recorded a revenue growth of 25% in Q4FY23 compared to Q4FY22. The corresponding PBT before exceptional items came in at INR 979 crores, higher by 37%, compared to Q4FY22. The Like-to-like PBT growth for this quarter was 28% (after adjusting for ex-gratia provision in Q4FY22)

Jewellery: Total Income of INR 7,576 crores, increased by 24% compared to Q4FY22. The India business grew by 21% in the same period. The Buyer growth clocked an encouraging 15% and average ticket sizes moved up by 8% compared to Q4FY22. The Wedding segment witnessed a comeback with growth rates marginally higher than the overall retail sales growth. The competitive intensity in gold rates continued to remain high. EBIT was INR 997 crores with 13.2% EBIT margin for Q4FY23.

The high visibility campaigns in Tanishq during the period comprised of ‘Spring Summer Edit ’23’, ‘Tanishq Super Woman’ and new collections to celebrate the festive occasions of Ugadi and Gudipadwa. Mia by Tanishq sponsored RCB’s women’s team for first ever WPL.

Watches & Wearables: Business recorded a Total Income of INR 871 crores, up by 40% compared to Q4FY22 backed by a strong growth in analog watches segment and multi-fold increase in wearables. Business hit significant milestones of INR 5,000+ crores of annual Uniform Consumer Price (UCP) retail sales and total sales of 1 million+ smart watches. During the quarter, Titan moved into the Top 5 Smartwatch companies by market share in India (IDC Tracker Feb’23). EBIT was INR 98 crores clocking an EBIT margin of 11.3% for Q4FY23.

EyeCare: Total Income of INR 165 crores was up by 23% compared to Q4FY22. The Business achieved a landmark milestone of INR 1,000 crores in annual UCP retail sales value for the first time. EBIT came in at INR 2 crores after making a one-time payment of INR 8 crores to its franchisee partners to recognize their extra-ordinary efforts.

Emerging Businesses: Total income of INR 77 crores for the Emerging Businesses comprising of Fragrances, Fashion Accessories (F&FA) and Indian Dress Wear (Taneira) grew by 84% compared to Q3FY22. Within this, F&FA clocked 31% growth whereas Taneira grew by 200% over the same period last year. The Emerging Businesses continued to invest in scaling up their respective verticals and recorded a loss of INR 33 crores.

Taneira launched the Summer Sorbet collection and also partnered in a unique Saree Run in Kolkata that saw participation from over 4,000 women across all age bands. Continuing its efforts to preserve the weaving craft and uplift working conditions of the weavers, 7 new Weavershalas were added during the quarter, ending the year with a tally of 10 Weavershalas.

Key Subsidiaries of the Company:

CaratLane Trading Private Limited: Total Income grew by 58% to INR 580 crores as compared to Q4FY22 driven by gifting campaigns around Valentine’s Day. The #KhulKeKaroExpress campaign focused on encouraging customers to look beyond the traditional boundaries to express emotions for their loved ones. Profit before taxes was INR 23 crores with a margin of 3.9%.

Titan Engineering & Automation Limited: The Business recorded a Total Income of INR 174 crores, lower by 7% compared to Q4FY22. Profit before taxes for the quarter was INR 19 crores with a margin of 11%.

Yearly Business Performance:

Retail Network: The Company significantly added to its retail network presence, both in India and overseas during the fiscal year. Jewellery (Tanishq, Mia by Tanishq & Zoya) added a total of 97 stores in FY23 taking the total count to 541 stores spread across 253 cities (including 7 international stores in Dubai, Abu Dhabi & USA). Watches & Wearables (Titan World, Helios & Fastrack) while adding 162 stores for the year, crossed an important milestone of 1,000+ stores presence. The total store count now stands at 1,005 stores spread across 306 cities. EyeCare significantly accelerated its network reach adding a record 168 stores (Titan Eye+, Fastrack) for the year and taking the total count to 901 stores spread across 352 cities. Taneira expanded its presence to cover newer cities and added 21 stores ending the year at 41 stores spread across 22 cities. CaratLane created a record of 84 store additions in FY23 with presence in a total of 222 stores spread across 88 cities pan-India.

Commenting on the results,

Mr. C K Venkataraman, Managing Director of the Company stated that:

“The year gone has witnessed several firsts in the history of Titan. The Jewellery, Watches & Wearables and EyeCare achieved landmark milestones of INR 30,000 crores, INR 5,000 crores and INR 1,000 crores of annual consumer retail sales respectively for the first time in their retail journeys. During the year, Titan opened the first Tanishq store in USA and Titan Eye+ store in Dubai. The House of Titan proudly launched its latest brand ‘IRTH’, an exciting collection of Women‘s Bags. After a satisfying performance across all the segments during FY23, we are well prepared and looking forward to an exciting FY24.”

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’s 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.