Aug 07, 2017

Titan’s Jewellery Division Revenue Jumps by 54% in Q1 FY 2017-18

Titan Company Limited said the Company had “an extremely good quarter” whilst reporting results for the quarter ended June 30, 2017 (Q1 FY2017-18).

The Company’s total revenue increased by 42% to Rs. 3944.49 crore in the period, from Rs. 2769.55 crore reported in the same period of the previous year. Profit before tax (PBT) vaulted 110%  y-o-y jumping  from Rs. 176.13 crore in Q1 2016-17 to Rs. 370.70 crore in Q1 2017-18.  This growth was “driven largely by a healthy growth in the Jewellery business”, the Company said. 

Titan’s jewellery division – Tanishq – recorded a jump in income of 54% in the period to touch Rs. 3307.71 crore; as compared to Rs. 2150.59 crore earned in the same period of the previous year.

While the Company’s watches business increased from Rs. 499.73 crore   (Q1 2016-17)   to Rs. 509.92 crore  for Q1 2017-18 , recording a growth of 2%;  its   eyewear business was flat at Rs. 110.67 crore earned for the current period under review. Titan’s other businesses – including accessories, fragrances and sarees – increased by 46% to Rs.19.90 crore for  Q1 2017-18.

The Company also reported that it had added a net of 31 stores across all its businesses in the first quarter as it pursued its goals of retail expansion. Titan ended the quarter with a total retail area of over 1.83 million sq.ft. across India; and its retail chain had a total of 1397 stores, as on 30th June 2017.

While, on the one hand, the Company has   growth plans in place for all its retail businesses – watches, jewellery and eyewear – it has also chalked up programmes “to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters”, Titan said.

Bhaskar Bhat, Managing Director of the Company commented:  “Our Jewellery business has delivered a stellar performance in the first quarter due to a combination of one of the best Akshaya Tritiya sales, a very successful gold exchange programme as well as an element of advancement of sales in June 2017 in anticipation of higher GST rates. All retail formats of our Watches business recorded growth but the topline growth was subdued due to postponement of Titan and Fastrack brand activations. The performance of our eyewear business has been adversely impacted due to a slowdown of the sunglass category. Driven by the jewellery business, our profits saw an outstanding growth this quarter.” 
 

Pic caption: Jewellery from Tanishq