Timex Group India Limited , a leading player in the Indian watch industry, has reported exceptional financial results for the first quarter, showcasing robust growth across key metrics.

Revenue Soars

The company's revenue from operations witnessed a remarkable increase of 55%, reaching Rs 168.94 crore compared to Rs 108.67 crore in the corresponding quarter of the previous year. This significant growth underscores the company's strong market position and effective strategies in capturing consumer demand.

Profit Skyrockets

In a testament to its operational efficiency and market performance, Timex Group India's net profit surged by an impressive 503%, climbing to Rs 14.67 crore from Rs 2.43 crore in the same quarter last year. This substantial increase in profitability reflects the company's ability to leverage its revenue growth effectively.

Financial Highlights

Operational Performance

The company's total income reached Rs 169.25 crore, up from Rs 109.19 crore in the prior year quarter, marking a 55% increase. This growth was primarily driven by strong performance across various brands and channels.

Earnings Per Share

The basic and diluted earnings per share (EPS) stood at Rs 1.33, a significant improvement from Rs 0.06 in the same period last year, representing a remarkable 2117% increase.

Management Commentary

Deepak Chhabra, Managing Director of Timex India, expressed his enthusiasm about the results, stating, "What a phenomenal start to the year! Our flagship brand, Timex, has delivered its best-ever performance this quarter, a clear reflection of our sharp focus on premiumisation, product innovation, and expanding consumer access."

Brand Performance

• Timex, the flagship brand, achieved an impressive 77% year-on-year growth.
• Guess Watches demonstrated strong resilience with a 33% growth.
• Versace recorded a notable growth of 18%, driven by rising demand for aspirational luxury watches.
• Other licensed brands maintained solid momentum, delivering robust quarter-on-quarter performance.

Channel Performance

• E-commerce posted stellar 102% year-on-year growth, doubling its business.
• The trade channel, the company's largest, posted an impressive 22% growth.
• Other strategic verticals made a meaningful impact, with the OEM business witnessing noteworthy triple-digit gains.

Future Outlook

With a growing slate of global collaborations and a robust omnichannel strategy, Timex Group India is confident in accelerating its growth trajectory and further reinforcing its leadership in India's dynamic watch market.

The company's focus on premiumisation, product innovation, and expanding consumer access appears to be paying off, setting a strong foundation for continued growth in the coming quarters.

Timex Group India Limited continues to strengthen its position in the Indian watch market, leveraging its diverse brand portfolio and strategic initiatives to drive growth and profitability.

Timex Group , a prominent player in the Indian watch market, has witnessed a significant shift in its ownership structure. Luxury Watches B.V., the major shareholder of the company, has substantially reduced its stake, marking a notable change in the company's shareholding pattern.

Shareholding Changes

Luxury Watches B.V. has decreased its stake in Timex Group India from 74.93% to 59.93%, representing a 15 percentage point reduction in ownership. This move has several implications for the company and its stakeholders:

1. Reduced Control: The significant reduction in stake suggests a decrease in Luxury Watches B.V.'s control over Timex Group India's operations and decision-making processes.

2. Increased Free Float: The reduction in the major shareholder's stake potentially increases the free float of Timex Group's shares in the market, which could lead to higher liquidity for the stock.

3. Potential Strategy Shift: Such a substantial change in ownership might signal a shift in the company's strategic direction or Luxury Watches B.V.'s investment strategy.

Market Implications

While the reasons behind this stake reduction have not been disclosed, such moves often attract attention from market analysts and investors. The change could potentially impact:

• Investor sentiment towards Timex Group India
• The stock's trading volume and price in the short term
• The company's governance structure and future strategic decisions

It's important to note that despite the reduction, Luxury Watches B.V. remains the majority shareholder with a 59.93% stake, maintaining significant influence over the company.

Investors and market watchers will likely keep a close eye on any further developments or announcements from Timex Group or Luxury Watches B.V. regarding this change in shareholding pattern and its potential implications for the company's future direction.