Feb 09, 2022

Titan: Q3 One Of Its Best Quarters In Terms Of Growth & Profitability

Titan Co., India’s largest jewellery retailer, recorded a 37% jump in jewellery sales (excluding bullion) to Rs.8,563 crore during the Q3 that ended 31st December 2021, mainly driven by festive purchases in October and November.

The jewellery division, which comprises brands Tanishq, Zoya, Mia and CaratLane, achieved earnings before interest and tax (EBIT) of Rs.1,260 crore for the quarter, an increase of 68% compared to Rs.752 crore in the same quarter of the previous year.

“EBIT margins, the best in preceding seven quarters, were driven by scale induced healthy operating leverage gains, better product mix and higher realisation due to diamonds’ price appreciation,” the company said.

Among its jewellery segment highlights, Titan noted that ticket sizes were stable year-on-year, and Tanishq’s regionalisation strategy of winning in focus markets led to higher new buyer growth. Wedding sales were 40% higher year-on-year along with higher contribution to total sales. Titan said both plain and studded categories grew ~35%+ YoY. The studded ratio was at 26% in the overall mix and saw marginal improvement over same period last year, it added.

CaratLane continued to do well in both online and offline channels emerging as a strong omni player. For Q3 of FY22, it clocked a revenue of Rs.446 crore and a profit before tax of Rs.28 crore compared to revenue of Rs.273 crore and a profit before tax of Rs.16 crore in Q3 FY21.

C.K. Venkataraman, Managing Director, Titan Co., stated: “The festive purchases in the quarter have driven Titan’s strong growth in all businesses of the company and the quarter has turned out to be one of the best quarters in terms of growth and profitability. We continue to leverage technology and innovations in launching our new products and campaigns which have been received very well by the consumers. While the onset of Covid wave 3 has slowed down the strong momentum, the company is hopeful of ending the year on a positive note.”

In an earnings conference call, the company said that buoyed by the success of its Dubai jewellery store, it plans to open two more in the next 2-3 months; and its first North America jewellery store is slated to open in May-June this year.

Photo credit: Tanishq