Titan Q1 Update: Consumer Business Rises 20%, 10 New Stores Added
The watches and wearables division's domestic business grew 23% on a year-on-year basis.
Titan Co. announced on Monday that its consumer business saw a growth of 20% in the first quarter ended June.
The Tata Group-managed jewellery and watchmaker added 10 stores during the April-June quarter, taking its combined retail network presence to 3,322 stores, according to an exchange filing on Monday.
Its jewellery division, which contributes over three-fourths of its revenue, reported an 18% growth in the domestic market and added 19 stores. The growth in the quarter was impacted by gold price volatility, which affected consumer sentiment. "While Akshaya Tritiya period saw good traction, the increase in gold prices from May till mid-June saw some softening in customer purchases," the company said.
With the buyer growth flat for Tanishq, Mia, Zoya and CaratLane, customers preferred light weight and lower karatage jewellery.
The studded ratio saw a decline driven by the differential growth across segments. Coins led with strong gains, while plain gold grew in mid-teens and studded segment growth in early double digits. The like-to-like domestic sales for Tanishq, Mia and Zoya were in early double digit, driven by ticket size growth across formats. Sales for Caratlane were in healthy double-digits of 38%.
The watches and wearables division’s domestic business grew 23% on a year-on-year basis. Sonata led the growth in the quarter, followed by Titan and Fastrack. All the watch brands clocked healthy double-digit growth.
In the quarter, domestic revenue from the EyeCare Division grew 12% year-on-year, led by performance across retail and e-commerce segments.
In the emerging businesses, fragrances saw the highest growth of 56% year-on-year on the back of volume growth in Skinn and Fastrack. Women's bag segment rose 61% year-on-year and Taneira was up 15% year-on-year driven by value growth in sarees.
The international business in the June quarter grew 49% year-on-year, led by doubling of Tanishq's business in the US market.
The business update was shared aftermarket hours. The stock settled 0.46% lower at Rs 3,670 apiece on the NSE, compared to a flat close in the benchmark Nifty 50.
Titan's shares have risen 12.25% over the past 12 months and 12.81% year-to-date.
Out of 35 analysts tracking the stock, 23 have a 'buy' rating, seven suggest a 'hold,' and five recommend a 'sell,' according to Bloomberg data. The average of 12-month analysts' price target of Rs 3,806.24 implies a potential downside of 3.8% from its previous closing.
