Market leader Titan Company Limited announced robust financial performance for its jewellery division in the first quarter of FY25. The division, comprising Tanishq, Zoya, Mia and CaratLane, showcased notable growth despite challenging market conditions, contributing significantly to the company’s overall financial health.
In Q1 FY25, Titan’s jewellery division reported a total income of ₹9,879 crores, marking a 9% increase from Q1 FY24. The India business segment grew by 8% during this period. The division’s Q1 profit after tax fell 0.9% to ₹770 crores. Revenue from the Studded category grew ~23% year-on-year. Its contribution improved by ~3pp to ~78% for the quarter, Titan informed.
The company launched 412 designs in Q1 to drive freshness and activate both repeat and dormant customers.
The first six weeks of the quarter, including the festival of Akshaya Tritiya, saw a remarkable 20% retail growth. However, various factors impacted the overall consumer demand. A significant 20% increase in gold prices compared to Q1 FY24, election-related restrictions in multiple markets, a limited number of auspicious wedding dates, and an unprecedented heatwave across the country collectively influenced the topline.
During this quarter, Tanishq, Titan’s flagship jewellery brand, launched its ‘Enchanted Trails’ diamond collection at the Paris Haute Couture Week, Fall-Winter 2024-25.
Titan continued its aggressive expansion strategy by opening 11 new Tanishq stores across India. Mia added 19 and Zoya added 3 stores respectively. Zoya opened its first store in the cities of Chennai and Pune. Titan took the total international stores to 17 with the addition of a new store in Muscat, Oman.
C.K. Venkataraman, Managing Director of Titan, commented, “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.”