Titan Q1 Update: 20% Revenue Growth, Retail Presence Expands to 2,778 Stores

Titan Company, a leading jewellery and watches maker, announced its financial results for the April-June quarter of the fiscal year 2023-24, showcasing impressive growth and a strong all-around performance. The company reported a 20% year-on-year (YoY) revenue growth, with double-digit growth observed in all key consumer businesses.

Jewellery Division

The jewellery division of Titan experienced a remarkable 21% growth in the first quarter of FY24. The growth was primarily driven by the gold and studded categories, with no notable changes in the overall product mix. Despite significant volatility in gold prices, sales during the auspicious occasion of Akshaya Tritiya in April and wedding purchases in June remained robust. Tanishq also added a new store in Sharjah, expanding its international presence to seven stores in the GCC region and one store in the US. On the domestic front, Titan added nine stores under the Tanishq brand and eight stores under Mia by Tanishq.

Watches and Wearables Division

The watches and wearables division witnessed a 13% YoY growth in Q1 FY24. This growth comprised an 8% increase in the analogue watches segment and a substantial 84% YoY growth in wearables. Consumer preferences for premium brands contributed to an uptick in the average selling price for watches. The Helios chain, Large Format Stores (LFS), and e-commerce channels recorded higher growth rates compared to others. During the quarter, Titan added 26 new stores, including 14 Titan World stores, 9 Helios stores, and 3 Fastrack stores.

EyeCare Division

The EyeCare Division of Titan saw a sales growth of 10% YoY in the first quarter of FY24. The trade and distribution channel outperformed Titan Eye+.

Emerging Businesses

In the emerging businesses segment, fragrances and fashion accessories achieved a combined 11% YoY growth, driven by a 9% growth in fragrances and a 13% growth in fashion accessories. Taneira, Titan's ethnic wear brand, witnessed an exceptional 81% YoY growth in Q1.

Market Response

Following the announcement, Titan Company's shares rallied over 3%, reaching a fresh 52-week high of ₹3,211.10 apiece on the BSE. Global brokerage firm Morgan Stanley highlighted strong Q1 performance, with a 20% YoY growth at the company level, led by a 21% growth in the jewellery segment. Analysts from Goldman Sachs and Prabhudas Lilladher Pvt Ltd also expressed positive sentiments, citing stronger-than-expected jewellery sales growth and potential growth drivers such as store expansions, improved product mix, and emerging businesses.

Overall, Titan Company's robust performance in the first quarter of FY24 reflects the company's ability to navigate challenges such as gold price volatility and capitalize on consumer preferences, driving growth across its key business segments.