Titan Company Limited recorded a revenue growth of 25 per cent YoY during the second quarter of FY25, as stated by the company’s Q2 Update released on the exchanges. The company had reported a 5.4 per cent YoY decline in consolidated net profit for the April-June quarter at Rs 715 crore. Despite the profit decline during the period, the company had posted a 12.6 per cent increase in sales, reaching Rs 12,223 crore for the quarter, compared to Rs 10,851 crore in the same period last year.
Per the provisional data shared by the company for the second quarter of the current fiscal year, it said that a total of 75 stores (net) were added during the period expanding Titan’s combined retail network presence to 3,171 stores.
Titan Company said that its Jewellery domestic operations grew by 25 per cent YoY in Q2 after a relatively soft Q1. “Consumer demand significantly picked up momentum after the reduction in custom duty on gold imports from 15 per cent to 6 per cent leading to a strong double digit uptick in gold (plain) for the quarter,” it said. Earlier in July, Budget 2024-25 announced the slashing of customs duties on gold and silver to 6 per cent from 15 per cent and on platinum to 6.4 per cent from 15.4 per cent in response to sustained demand from the industry. On this, Titan CEO CK Venkataraman, had in August, said, “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 on the longer-term benefits as it makes the market equitable for large businesses like ours.”
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During Q1FY25, Titan had faced several challenges including a significant rise in gold prices (20 per cent increase), election-related restrictions, a limited number of wedding dates, and an unprecedented heat wave affecting consumer demand.
Titan Company said that the non-solitaire studded segment recorded growth in high double-digits whereas the solitaire segment saw a decline amidst price uncertainty and demand supply dynamics in the international markets, both together resulting in overall studded sales growth in low double-digits for the quarter.
Further, the launch of new collections, promotions and various marketing campaigns spurred buyer growth at 11 per cent YoY, it said. The like-to-like (secondary) sales growth for the domestic operations came in mid-teens. In terms of store additions, Mia added a new store in Abu Dhabi during the quarter; and of the 23 new store additions (net) in India, 11 stores were in Tanishq, 11 in Mia and 1 in Zoya respectively.
Elaborating on the business performance of watches and wearables segment, Titan Company said that the vertical grew by 19 per cent YoY. Revenue growth in Analog was around 25 per cent YoY well supported by both volume and value growths. Similar to most other consumer goods segments, the premiumization theme continued to be a major growth driver across brands for Titan Company as well. Wearables witnessed a revenue decline in low double-digits in a category that is continuing to see significant decline. The division added 34 new stores (net) in the quarter consisting of 18 stores in Titan World, 14 in Helios and 2 in Fastrack.
Titan Company’s EyeCare domestic business grew by 6 per cent YoY. The secondary sales growth was nearly similar with buyer growths growing marginally higher YoY. Titan Eye+ added 2 new stores (net) in India during the quarter, it said.
In Emerging Businesses, Taneira’s revenue saw an uptick of 11 per cent YoY. The brand opened 4 new stores during the quarter, with two of them in cities of Indore and Prayagraj. The Fragrances & Fashion Accessories revenue went up by 17 per cent YoY. Within businesses, Fragrances grew by 19 per cent YoY and Fashion Accessories reported a growth of 11 per cent YoY.
Caratlane business clocked 28 per cent YoY growth during the quarter aided by activations and healthy growth in brand searches. Buyers grew 24 per cent YoY and the like-to-like (secondary) growths were at 21 per cent YoY; Studded ratio was higher compared to O2FY24. Titan Company said that the business added 11 new domestic stores (net) in the quarter expanding its network presence to 286 stores pan-India.
From: financialexpress
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