Titan jewellery income grew 9% over Q1FY24

 

Consolidated an income jump by 12% in Q1FY25 

Titan (Consolidated) recorded an income of Rs12,386 crores growing by 12% in Q1FY25 compared to Q1FY24. The PBT was lower by 3% at Rs973 Cr compared to Q1FY24 due to financial costs of Caratlane acquisition (acquisition costs were not part of the base quarter).  

Business Performance (Standalone) for Jewellery reported, total Income for the quarter grew 9% over Q1FY24 to Rs 9,879 crores. The India business grew 8% in the same period. EBIT at Rs 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 topline. A steep rally in gold rates (20% increase over Q1FY24), election led restrictions in many markets, very few wedding dates and an unprecedented heat wave across the country weighed on overall consumer demand. Tanishq launched it 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.  

At Watches & Wearables front, business recorded a Total Income of Rs 1,021 crores, up 15% over Q1FY24. The domestic business grew 14% in the same period. EBIT came in at Rs 115 crores clocking a margin of 11.3% for the quarter. Analog segment recorded a strong 17% Revenue growth over Q1FY24 led by Titan, Fast rack and Sonata brands. In key channels, Titan World grew 13% over Q1FY24 (9% like-to-like growth) in consumer sales despite heat wave disruptions in this period. E-com consumer sales also recorded strong double-digit growths compared to Q1FY24. While volumes in 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 dial for the first time in the product. During the quarter, a total of 17 new stores (net) were added across the network comprising of 5 new stores in Titan World, 5 in Helios and 7 in Fastrack respectively.  

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 on 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 rest of the financial year.”