Titan Company Limited Q3 Results- Total Income Surged to ₹11,709 Crore

Last Updated on February 2, 2024 by ethinos

Jewellery Performance Financial Highlights:

1. Robust Growth:

Total Income surged to ₹11,709 crore, marking a significant 23.0% Year-on-Year (YoY) increase. Notably, the India business witnessed substantial growth, soaring approximately 21% YoY to ₹11,313 crore. Additionally, primary shipments to International entities experienced an impressive YoY growth of about 100%.

2. Festive Boost:

Festive-led gold purchases spurred double-digit buyer growth for the quarter. New buyer contribution surged to a healthy ~50% across all brands.

3. Adapting to Market Dynamics:

Amidst sharp swings in gold prices, witnessing a YoY increase of over 16%, the company made strategic investments in programs and gold rate protection offers. This proactive approach aimed to sustain market share growth amidst price fluctuations.

4. Studded Revenues:

Despite some softness in demand observed in December, studded revenues demonstrated resilience, achieving a commendable YoY growth of approximately 14%.

5. Profitability:

Earnings Before Interest and Taxes (EBIT) stood at ₹1,432 crore, reflecting a robust 15.9% YoY growth and achieving a margin of 12.2%.

Expansion and International Presence:

6. Global Expansion:

Tanishq expanded its international footprint by adding two new stores in the USA, located in Houston and Dallas, and one store in Singapore. This strategic expansion reinforces Titan’s Jewellery’s international presence, now totalling 14 stores.

7. Domestic Growth:

In India, Tanishq opened 18 new stores during the quarter, further expanding its reach. Additionally, Mia, another brand under Titan’s Jewellery, added 16 new stores, consolidating its presence across the country to reach 65 towns pan-India.

Additional Read: Q3 Results Dashboard

Watches & Wearables Financial Performance:

1. Total Income Growth:

The division’s total income surged by 21.1% Year-on-Year (YoY) to ₹982 crore. Within this, India operations witnessed robust growth, reaching ₹968 crore, a remarkable increase of 22.5% YoY.

2. Product Segment Performance:

• Analog Watches: Revenues from analog watches witnessed a steady growth of approximately 18% YoY, reaching ₹810 crore.
• Wearables: The wearables segment experienced substantial growth, soaring by approximately 65% YoY, achieving revenues of ₹136 crore for the quarter.

3. Premiumization Strategy:

Titan and Helios, the international brands, showed promising growth rates in line with overall business growth. This growth was primarily driven by an increase in their respective Average Selling Prices (ASP), indicating progress in the premiumization journey.

4. New Product Launches:

The division launched ‘Vyb’, a new sub-brand catering to affordable fashion party watches for girls under the Fastrack umbrella. Additionally, to cater to the evolving needs of value-conscious consumers in the fast-fashion segment, ‘Poze’ was launched under the Sonata brand.

5. Wearables Segment Expansion:

Fastrack witnessed a significant YoY growth of approximately 66%, while Titan Smart grew by around 57% YoY in the wearables segment. As a result, the wearables segment’s share in the total portfolio increased to approximately 14% from around 11% in Q3FY23.

6. Profitability:

Earnings Before Interest and Taxes (EBIT) stood at ₹55 crore, with a margin of 5.6%. The division ramped up its marketing spends during the quarter to promote new launches for the festive season, including Titan Stellar, Raga Power Pearls, Fastrack Vyb, and Sonata Poze.

Expansion and Store Additions:

7. Retail Expansion:

The division expanded its retail footprint by adding 9 new stores in Titan World, 11 in Helios, and 5 stores in Fastrack during the quarter. This strategic expansion aims to enhance market reach and cater to growing consumer demand.

EyeCare Performance Financial Performance:

1. Total Income Decline:

The division’s total income witnessed a decline of 4.0% Year-on-Year (YoY), totalling ₹167 crore in Q3FY24.

2. Brand Performance:

International Brands (IB): Despite the overall decline, International Brands (IB) experienced a notable growth of approximately 14% YoY. Conversely, House Brands saw a decline of approximately 9% YoY in revenue. Notably, the share of IB improved to approximately 29% of the EyeCare portfolio.

3. Category Performance:

• Sunglasses: Sunglasses category demonstrated a modest growth of around 5% YoY.
• Frames and Lenses: Revenues from Frames and Lenses witnessed declines of approximately 5% each YoY.

4. Average Selling Price (ASP) and Volumes:

• ASP Growth: The Average Selling Price (ASP) experienced flattish growth of around 2% YoY.
• Volume Decline: Total volumes declined by approximately 5% in the same period.

5. Profitability:

Earnings Before Interest and Taxes (EBIT) stood at ₹14 crore, with a margin of 8.4%.

Expansion and Store Additions:

6. International Store Openings: Titan Eye+ expanded its international presence by opening two new stores, one each in Dubai and Sharjah, located in the GCC region, during the quarter. This strategic expansion underscores the division’s commitment to international growth and market penetration efforts.

Financial Performance: Emerging Businesses

1. Strong Growth:

Emerging Businesses, comprising Fragrances & Fashion Accessories (F&FA) and Indian Dress Wear (Taneira), exhibited robust growth of 25.8% in Total Income Year-on-Year (YoY).

2. Taneira’s Remarkable Performance:

• Sales Growth: Taneira, the Indian Dress Wear brand, witnessed exceptional sales growth of approximately 61% YoY in Q3FY24.
• Expansion: During the quarter, Taneira expanded its footprint by opening 11 new stores, bringing the total store count to 62 stores across 29 cities.

3. Product Highlights and Events:

• The Queen’s Collection: Taneira’s highlight for the season revolved around ‘The Queen’s Collection,’ catering to festivals and weddings. The brand hosted an exclusive exhibition named ‘Parichay,’ showcasing indigenous crafts such as Tussar silk creations, Chamba folk embroidery, Zardozi embroidery, Batik with Kantha embroidery, Chitara paintings, Madhubani paintings, and Thangka-inspired paintings.
• Weaving Craft Preservation: In line with its commitment to preserving weaving craft and improving working conditions for weavers, Taneira launched a Weavershala at Bhagaiya, Bhagalpur. With this addition, Taneira now supports a total of 13 Weavershalas across the country.

4. F&FA Performance:

• Revenue Trends: Despite the overall growth, Fragrances & Fashion Accessories (F&FA) revenues experienced a slight decline of approximately 7% YoY.
• Sub-Segment Performance: Notably, Fragrances declined by around 6% YoY, while Women’s Bags exhibited significant growth of 25% YoY in key sub-segments.

CaratLane Trading Private Limited:

• Total Income Growth: Total Income surged by 32.0% Year-on-Year (YoY) to ₹893 crore.
• Category Revenue Growth: Revenue from the Studded category soared by 39% YoY, while Solitaires witnessed a growth of approximately 10% YoY. Studded category’s contribution to the total business increased to around 78% for the quarter.
• Profitability: Earnings Before Interest and Taxes (EBIT) stood at ₹82 crore, with a margin of 9.2%.
• Campaign Highlights: The season’s main campaign, #KhulKeKaroExpress, drew inspiration from ‘Alpona,’ a 100-year Bengal art form, featuring eight unique motifs in white ceramic and diamonds. Additionally, addressing modern consumer demands during the wedding season, the brand launched its first-ever Mangalsutra campaign called “EveryDay Vows.”
• Store Expansion: CaratLane expanded its retail presence by adding 16 new stores (net) during the quarter, bringing the total store count to 262 stores spread across 105 cities pan-India.

Titan Engineering & Automation Limited:

• Total Income Growth: Total Income witnessed a remarkable growth of 61.3% YoY, reaching ₹202 crore. 
• Divisional Revenue Growth: Automation Solutions (AS) division revenues surged by approximately 85% YoY to ₹121 crore, while Manufacturing Services (MS) grew by around 30% YoY to ₹78 crore.
• Order Book and Business Expansion: The AS business secured orders worth ₹129 crore during the quarter, with a current order book position of ₹629 crore as of December 2023, a significant portion of which is attributed to the Electric Vehicles segment.
• Profitability: EBIT for the quarter stood at ₹25 crore, with a margin of 12.4%.

Additional Check: Titan Share Price

About Titan Company Limited 

Titan Company Limited is a leading company in the watch and jewellery industry, with a wide range of brands such as Titan, Tanishq, Zoya, Fastrack and more. It is a part of the Tata Group and has over 8,000 employees and 38,000 associates in its ecosystem. It operates in four segments: Watches and Wearables, Jewellery, Eyewear, and Others. It also has subsidiaries and joint ventures in various fields such as aerospace, defence, commodity trading, and more.

Titan Company Limited was incorporated in 1984 and has its headquarters in Bengaluru, India. It is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) under the symbol TITAN. As of January 31, 2024, its market capitalization was Rs 334,713.14 crore.

Titan Company Limited has won several awards and accolades for its excellence in business, innovation, design, and sustainability. Some of the recent ones include CEO of the Year by Forbes India 2023, Company of the Year by Business Standard Annual Awards, and Best Board by The Economic Times.

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Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/c1bfbdb2-92c2-44f4-8fc0-617b9ea463c7.pdf