Titan Provides Q3 Business Performance Update

Titan has come a long way since 1984, when we started with one product category. Today, with over 8,000 employees and about 38,000 in the overall Titan ecosystem, 16 brands, and over 2,000 retail stores, we are as committed as ever to delivering profitable and responsible growth for all our stakeholders. Titan is India’s leading lifestyle company and among the most admired and respected corporations in the country. We have established leading positions in the jewelry, Watches, and eye care categories, led by our trusted brands and superior customer experience. We have also diversified into wearables, Indian dress Wear and fragrances & fashion accessories and are driving differentiation in these lifestyle categories, underpinned by our deep understanding of customer preferences. A journey of over 30 years that saw the Titan Watch Project becoming Titan Watches, Titan Industries, and to what’s today known as the Titan Company Limited. With hitting the 15 million mark every year in production, each year saw new technologies and innovations.

Titan Q3 business performance for FY25:

The jewelry division’s domestic operations experienced a noteworthy 25% year-over-year (Y-o-Y) growth in Q2, rebounding from a comparatively weak Q1. Titan said that the surge in consumer demand—which resulted in a double-digit increase in sales of plain gold—was mainly caused by the reduction in customs duty on gold imports, which went from 15% to 6%.

International market price volatility and new launch:

The solitaire segment experienced issues due to price volatility and supply-demand dynamics in global markets, which led to a low double-digit growth in studded sales overall as opposed to a high double-digit growth for the non-solitaire segment. Along with an 11% YoY increase in buyer growth, new collections and marketing campaigns contributed to like-to-like (secondary) sales growth in the mid-teens. Along with adding a net total of 23 new stores in India—11 for Tanishq, 11 for Mia, and one for Zaya—the company also opened a new Mia store in Abu Dhabi during the quarter. The domestic business of the Watches & Wearables segment grew by about 19% year over year, with revenues from analog watches rising by about 25% due to increases in both volume and value. Despite the wearables category experiencing a low double-digit revenue decline, the premiumization trend continued to be a major driver of growth. The division opened 34 new stores (net), with two in Fastrack, 18 in Titan World, and 14 in Helios.

Considerable expansion in the EyeCare industry:

The YoY growth rate for the EyeCare segment was 6%, and secondary sales growths demonstrated comparable patterns. In India, Titan Eye+ launched two new locations during the quarter. Taneira’s revenue increased by approximately 1% in the Emerging Businesses category, thanks to the opening of four new stores in cities like Prayagraj and Indore. The combined revenue for fragrances and fashion accessories grew by approximately 17% year over year, with fragrances growing by 19% and fashion accessories by 11%. Due to activations and an increase in brand searches, Caratlane’s business experienced a remarkable 28% YoY growth, with buyers growing by 24% and like-to-like growth at 21%. Caratlane now has 286 stores throughout India after adding 11 new domestic locations.

The stock of Titan Company Ltd. has dropped more than 3% intraday:

The late Rakesh Jhunjhunwala supported Titan Company Ltd.’s stock, which fell more than 3% today and reached a low of Rs. 3,552.30. Though it has since rebounded, despite the company’s encouraging quarterly results, it is currently down 2%, trading at Rs. 3,599.65 per share.

Conclusion: Titan is performing fairly well in the quarter despite the stock decline today, but the investments made in this particular quarter will help them achieve the results they need until the next quarter when the company’s and the stock’s position will be favorable.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.