Titan Company Limited , a leading player in the Indian jewellery and watch market, has reported a satisfactory performance across all business segments in the first quarter. The company's flagship jewellery division, including CaratLane, achieved a robust 16% revenue growth, while the watches and wearables segment showed exceptional growth across all channels.

Jewellery Segment Leads Growth

The jewellery segment, which includes the Tanishq brand and CaratLane, continued to be the primary growth driver for Titan. The 16% revenue growth in this segment was supported by strong performance across various price points and categories. The company benefited from a one-time item of INR 50.00 crore in the jewellery division, providing a 50 basis points margin benefit from hedging gains.

Ajoy Chawla, CEO of the Jewellery Division, stated, "We have seen good traction across our product range, with solitaires and high-value diamonds showing particularly strong growth. Our strategy to cater to different price points is paying off, with the introduction of 9 carat and 14 carat offerings to address the lower price segment."

Watches and Wearables Segment Shows Exceptional Growth

The watches and wearables segment demonstrated exceptional performance, with growth observed across all channels. The company reported a significant margin improvement in this segment, partly due to a one-time inventory revaluation benefit of INR 50.00 crore, which provided a 400 basis points margin boost.

Suparna Mitra, CEO of the Watches & Wearables Division, commented, "Our analog watches are performing exceptionally well, while the smart watches market is going through a correction phase. We're maintaining and gaining market share in the smart watches category despite the subdued market conditions."

Other Business Segments

The eyewear segment recorded decent growth despite some store closures. The company's international business turned operating profit positive, marking a significant milestone in Titan's global expansion efforts.

Financial Performance and Outlook

Ashok Sonthalia, Chief Financial Officer, provided insights into the company's financial performance: "We maintain our 11-11.5% margin guidance for the jewellery segment and expect mid-teens margins for watches. The one-time benefits seen in Q1 are expected to reverse in Q2 and Q3, which we have factored into our guidance."

The company has advanced its Festival of Diamonds promotion to stimulate sales in the studded jewellery category. However, management expressed caution about Q2 growth due to high base effects from the previous year's customs duty reduction.

Strategic Initiatives

Titan is focusing on market development and innovation to drive growth. The company is exploring various price points and product offerings to cater to a wider customer base. C.K. Venkataraman, Managing Director, emphasized the need for continuous innovation: "We need to figure out how to innovate and excite the customer, especially in the INR 1 lakh plus, INR 2 lakh plus segment and in a way, gain share of wallet."

The company also addressed questions about the emerging lab-grown diamonds (LGD) market, stating that while they are monitoring the trend, the current LGD market in India is estimated to be less than 2% of the total diamond studded market.

As Titan navigates through the evolving market dynamics and consumer preferences, its multi-brand strategy and focus on innovation appear to be key drivers for sustained growth in the coming quarters.

Titan Company Limited , a leading player in India's lifestyle and consumer goods sector, has reported strong financial results for the first quarter, demonstrating resilience in the face of challenging market conditions.

Financial Highlights

The company's consolidated total income surged by 21% year-over-year to ₹14,966.00 crores. Profit after tax (PAT) saw a remarkable increase of 53%, reaching ₹1,091.00 crores with a margin of 7.3%.

Segment Performance

Jewellery Division

Despite an elevated gold price environment, Titan's jewellery portfolio, which includes brands like Tanishq, Mia, and Zoya, demonstrated resilience with a 19% growth, reaching ₹12,797.00 crores (excluding bullion and digi-gold sales). The division recorded an EBIT of ₹1,408.00 crores at a margin of 11.0%.

Key points:

• India business of Tanishq, Mia, and Zoya collectively grew by 18% to ₹11,217.00 crores.
• CaratLane showed strong performance with 39% growth to ₹1,026.00 crores.
• International jewellery business expanded by 49% to ₹554.00 crores.

Watches Division

The watches segment delivered an exceptional performance, marking one of its best-ever quarters:

• Total income grew by 24% to ₹1,273.00 crores.
• EBIT stood at ₹287.00 crores with a robust margin of 22.6%.
• Analog watches led the growth, expanding by 28% driven by volume uptake and pricing actions.

EyeCare Division

The EyeCare business reported:

• Total income of ₹238.00 crores, up 13% year-over-year.
• EBIT of ₹20.00 crores with a margin of 8.4%.

Emerging Businesses

Titan's emerging businesses, including Indian Dress Wear (Taneira), Fragrances, and Fashion Accessories, showed promising growth:

• Total income increased by 35% to ₹108.00 crores.
• Operational efficiencies helped reduce combined losses to ₹14.00 crores from ₹26.00 crores in the previous year's quarter.

Other Notable Developments

• Nebula by Titan unveiled 'JALSA', a rare tourbillion timepiece, crafted to honor 225 years of the iconic Hawa Mahal in Jaipur.
• Tanishq elevated its global brand presence through participation at Paris Couture Week and in Cannes.
• The company launched its first comprehensive ESG initiative, 'PRAGATI - the future we embrace', reinforcing its commitment to responsible and inclusive growth.

Management Commentary

CK Venkataraman, Managing Director of Titan Company, expressed optimism about the company's performance: "Q1 has been an encouraging start with 21% consolidated revenue growth, demonstrating the strength of our diversified business model. Our Jewellery business continues to show remarkable resilience despite headwinds from elevated gold prices. Watches delivered one of its best-ever quarters, achieving exceptional performance in both revenue growth and margins."

He added, "We remain optimistic about our growth trajectory and our ability to create long-term value across all business segments."

With its strong performance across segments and continued focus on innovation and expansion, Titan Company Limited appears well-positioned for sustained growth in the coming quarters.