Titan Q1 Update: Jewellery Sales Shine Despite Gold Price Volatility
The jewellery division saw 21% growth in revenue during the quarter ended June.
Titan Co. is expecting 20% year-on-year growth in revenue for the three months till June, driven by its mainstay jewellery business, which remained unaffected despite high volatility in gold prices throughout the quarter.
The jewellery division saw 21% growth in revenue during the quarter ended June, according to the country’s largest branded jewellery maker's quarterly business update filed with the bourses.
"Akshaya Tritiya sales in April and wedding purchases in June were robust," the company said. Golden harvest and exchange programmes also continued to do well during the quarter, it said.
The company added 18 stores in Q1—nine stores of Tanishq and eight stores of Mia by Tanishq.
It also added a new Tanishq store in Sharjah, thereby expanding its international presence to seven stores in the GCC region and one store in the U.S.
Other key consumer businesses also exhibited double-digit growth in the quarter. The watches and wearables division grew 13% over the previous year.
"The growth comprised 8% growth in the analog watch segment and 84% YoY growth in wearables," according to the company.
"Consumer preferences for premium brands resulted in a good uptick in the average selling price for watches," it said.
Among key channels, the Helios chain, large-format stores, and e-commerce clocked higher growth rates as compared with others. It added 26 watch stores in Q1. Of that, 14 stores were at Titan World, nine at Helios, and three at Fastrack, respectively.
Titan's eyecare division saw sales growth of 10% over last year, it said. The division added five Titan Eye+ and two Fastrack outlets.
Among emerging businesses, the fragrances and fashion accessories segment grew 11% year-on-year, driven by 9% growth in fragrances and 13% growth in fashion accessories. Taneira's Q1 sales grew by 81% YoY.
The brand opened six new stores, of which three were in new cities such as Vijayawada, Agra, and Berhampur, and the balance were in Mumbai, Hyderabad, and Lucknow, where the company is already present.
CaratLane grew 32% year-on-year driven by healthy contributions from multiple avenues that included sales during Akshaya Tritiya, Ada, a new hero collection for the season, 'Minion X, a new product launch for kids, and building new micro-occasions for jewellery gifting like 'First Salary Gifting'. The company added 11 new CaratLane stores in Q1 FY24.
Shares of Titan closed 0.18% higher on the BSE as compared with the benchmark Nifty 50's 0.51% gain. The update was released after market hours.
