Titan Company announced the business update for the fiscal fourth quarter wherein it said that the company closed the financial year on a strong note, clocking robust performance across key business segments. Titan Company registered 25 per cent YoY growth for the quarter in review and 21 per cent for the financial year. Titan Company’s consolidated retail network grew by 72 stores (net) in the quarter, taking the total store count to 3,312.
Elaborating on standalone performance, JM Financial said, “Overall standalone sales are expected to grow ~13 per cent YoY; 25 per cent growth adjusted of bullion sales in base quarter led by 25 per cent YoY growth in jewelry business (ex-bullion). We expect jewelry EBIT margin of 10.8 per cent (ex-bullion sales; flat YoY). Overall, we estimate standalone EBITDA/ PAT growth of 22/ 11 per cent YoY, 9/10 per cent ahead of our initial estimate.”
Q4 performance across key business verticals
Jewellery: Standalone jewelry sales (excl bullion) grew 24 per cent YoY in Q4FY25, boosted by the surge in gold prices, vs estimates by Motilal Oswal Financial Services (MOFSL) of 18 per cent growth in Q4FY25 and 26 per cent in Q3FY25. The growth was led by both plain gold jewelry (up 27 per cent YoY) and gold coins (65 per cent YoY), reflecting high consumer preference for gold, the company said. Elevated gold prices resulted in sluggish consumer demand at lower price points leading to single digit buyer growth, while demand at higher price bands sustained resulting in a high double-digit growth in ticket sizes. Meanwhile, studded jewellery registered low double-digit value (YoY) growth for the quarter. The Solitaire segment saw a turn around and registered both buyer and value growths in this period. Overall like-to-like (L2L) sales was 15 per cent YoY. In terms of retail presence, Tanishq expanded its international network to the new markets of Sharjah in UAE, Atlanta and Seattle in USA. Of the 16 new store additions (net) in India, 4 stores were added in Tanishq and 12 stores were added in Mia.
Watches: The watches segment recorded a strong growth of around 20 per cent YoY and Titan, Fastrack and Sonata propelled analog watches growth to 18 per cent YoY, the company informed the exchanges. “All the key retail channels of Helios, Titan World and Fastrack grew in healthy double digits with Helios channel registering the highest growth (relatively) reflecting consumer penchant for premium product offerings,” Titan Company said. The division added 41 new stores in the quarter, comprising 20 stores in Titan World, 10 in Helios, and 11 in Fastrack respectively.
EyeCare: The Eyecare segment grew by 18 per cent YoY contributed well by revenue and buyers. Titan Eyeplus, with its multibrand approach, registered a healthy double-digit growth driven by international brands. E-commerce is a new growth driver for the division and is favored by consumers for affordable fashion purchases like sunglasses, Titan Company said. During the quarter, Titan Eye+ added two new stores in the UAE region, one each in Sharjah and Dubai. The division closed 11 stores (net) in India in Q4.
Emerging Businesses: In emerging businesses, fragrances grew by 26 per cent YoY, fashion accessories clocked a 12 per cent YoY growth and Taneira ‘s sales were down by 4 per cent YoY. ‘SKINN’ piloted its first experiential store in Seawoods, Mumbai. ‘IRTH’ opened 4 new stores in Hyderabad, Pune, Noida & Mumbai. Taneira closed 1 store in this period.
Caratlane: Caratlane registered 22 per cent YoY growth (in a quarter of strong gold consumer preference), driven by healthy growth in the studded portfolio. The corresponding buyer growth was in mid-single-digits and L2L growth 11 per cent for this period. A total of 17 domestic stores (net) were added by Caratlane during the quarter.