Titan Reports Strong Q4 Jewellery Sales Growth Of 70%

Titan Company’s Jewellery division — comprising Tanishq, Zoya, Mia and CaratLane — posted 70% sales growth in Q4 of FY 2020-21 that ended 31st March, 2021.

The jewellery division recorded Q4 revenue of Rs.6,397 crore (excluding gold bullion sales) as compared to Rs.3,754 crore in Q4 last year. Full year jewellery sales rose 3% to Rs.17,274 crore.

The Jewellery business recorded a 32% jump in earnings before interest and tax (EBIT) to Rs.703 crore for the quarter, compared to Rs.534 crore in the previous year. Full year EBIT fell 18% to Rs.1,685 crore.

Titan pointed out that like every year, the quarter ran a promotion of diamond studded jewellery, which led to healthy growth. However, the plain segment and coins saw much better growth, leading to studded mix being at only 30% in Q4 2021 compared to 37% in Q4 2020. As a result, margins in the Jewellery business continued to be under pressure, the company noted.

Gold coins contributed 5% to revenue in Q4 2021 compared to 3% in the previous year. Excluding bullion sales, the studded mix is at 27% in FY 2021 compared to 32% in FY 2020, it noted.

C.K. Venkataraman, Managing Director, Titan Company, said, “The financial year ended March 2021 has indeed been a most testing one for the company with the pandemic hitting its operations very significantly, particularly in the first half of the financial year. But the bounce back of the company on the revenue front so quickly, led entirely by the complete support of our customers and the total dedication and innovative spirit of our employees and business associates, has been extremely gratifying.

“While the profits before tax and exceptional items for the year are lower than the previous year, mainly due to the impact of the pandemic on the business mix, the company did exceptionally well on the cost optimisation programme and cash generation front. We have also become stronger in each of our business segments. We believe the experience of the past year will help the company face future challenges even better.”

Titan said CaratLane continues to do very well in both the online and offline channels and ended the quarter with revenue growth of 59% to Rs.255 crore and profit before tax of Rs.15 crore. The revenue for the year to date grew 15% to Rs.715 crore and the net profit was Rs.2 crore compared with a Rs.27 crore loss in the previous year.

No Comments Yet

Comments are closed

Subscribe to our Newsletter

Discover the latest collections, news, and exclusive launches from us.