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Titan sees 18% sales growth in September quarter, jewellery division shines

business | Oct 7, 2022 9:34 AM IST

Titan sees 18% sales growth in September quarter, jewellery division shines

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Brokerages have termed Titan's business update to be a positive surprise. The stock is up 2.5 percent this year.

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Titan Company Ltd. reported a healthy double-digit growth across most of its business with overall sales rising 18 percent year-on-year for the September quarter. It also remains optimistic about the outlook for the upcoming festive season.
The company's jewellery division, which contributes to nearly 90 percent of the overall topline, registered 18 percent growth from last year on a high base. The division had grown 66 percent during the September 2021 quarter aided by pent-up demand and spillover purchases due to the pandemic.
Within the jewellery business CaratLane saw growth of 56 percent from last year. Among the categories, solitaires grew the fastest, followed by studded and gold jewelry. Studded jewellery contributed to nearly 70 percent of the business of CaratLane, despite a large base. CaratLane is a 72.3 percent subsidiary of Titan.
Product mix for the jewellery business improved compared to last year but remained below pre-pandemic levels. Titan opened eight new Tanishq stores, 16 new Mia by Tanishq stores and one Zoya store during the quarter.
Titan's watches division clocked its highest quarterly revenue in September. Premiumisation, coupled with transformation of retail stores by offering a wider choice of premium brands to customers, contributed to the business' 20 percent year-on-year growth during the quarter.
The company also launched Titan and Fastrack smart watches with bluetooth calling feature during the quarter.
Eye+ stores also witnessed healthy double-digit growth during the quarter which was offset by lower sales across the trade and distribution channel. 36 new Titan Eye+ stores were opened during the quarter.
Among the key offline channels for Fragrance & Fashion Accessories (F&FA), large format stores grew the fastest and also outperformed the overall division, which grew 34 percent from last year.
Titan's ethnic-wear business for Women, Taneria, registered growth of 114 percent from last year courtesy store expansions over the last 12 months. The brand now has 31 stores across 14 cities in the country.
Citi has termed Titan's quarterly update to be yet another positive surprise. The brokerage has maintained its 'buy' recommendation and a price target of Rs 2,970.
Morgan Stanley has also called the initial updates to be positive, citing the improving studded jewelry mix, positive consumer sentiments and good festive season outlook as the key positives. Its 'overweight' rating on Titan has a price target of Rs 2,902.
Shares of Titan are up 5.5 percent to trade at Rs 2,734 as of 9:35 AM.
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