Titan Company rallied 5.76% to Rs 2,129.45 after the firm said that its sales in Q1 FY23 soared 205% year on year (YoY) on a low base and clocked 3-year CAGR of 20.5% over Q1 FY20.
The company said Q1FY23 was a near normal first quarter after a gap of two years. The firm said its network expansion and campaigns continued to progress well throughout Q1 FY23, which was the only non-disrupted first quarter in the last three years.
The company's flagship Jewellery division had a good start to FY23 with robust sales on the auspicious occasion of Akshaya Tritiya (AT) in May month after 2 years of covid induced lockdowns in this period. On a low YoY base, the jewellery division revenues nearly tripled, clocking a growth of 207%. Growth in plain gold jewellery was nearly 3-times whereas studded sales were comparatively higher YoY.
Titan said that the store expansions (net) continued with commissioning of 6 new domestic stores in Tanishq and 13 in Mia. Karama (Dubai) saw a new Tanishq store in Apr 2022 with an encouraging initial response. Retail metrics of sales growth, walk-ins, conversions and jewellery mix including studded ratios continued to be healthy across all international stores, it added.
The watches & wearables segment achieved highest ever quarterly revenue in Q1 FY23 growing 158% YoY with healthy growth witnessed across all brands and products.
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The eyecare division witnessed a jump of 176% YoY was led by both Titan Eye Plus (TEP) and Trade & Distribution channels. The journey to reach 1,000 TEP outlets pan-India by end of FY23 accelerated with 56 new store additions for the quarter across cities of Bengaluru, Kolkata and Chennai. The division entered the Guinness World Records by conducting 0.13mn eye tests on a single day on 21 April 2022. The 'Make-in-India' Rx lens and frames production capacity is ramping up well.
Growth in trade, and e-commerce channels contributed to a 271% yearly increase for the other businesses division (fragrances & fashion accessories, Indian dress wear). Individually, fragrances grew at 262% YoY whereas fashion accessories grew 293% YoY.
Indian dress wear sales grew nearly seven times for the quarter (608% YoY). Brand Taneira expanded its national presence by adding 6 stores in the quarter. The stores are now spread across ten cities pan-India (Bengaluru being largest with 7 stores).
The business of the copmany's wholly-owned subsidiary, Titan Engineering & Automation (TEAL), grew by 35% YoY with both the divisions, automation solutions (AS) and aerospace and defence (AD) growing in-line with the overall revenues.
Titan said that CaratLane's strategy for Q1 centered on engaging and attracting customers for Akshaya Tritiya (AT). With markets open after a gap of 2 years, a very positive consumer sentiment helped CaratLane achieve its highest ever sales on the day of AT (20% higher than Dhanteras of 2021). Titan Company holds 72.3% stake in CaratLane.
Titan Company is engaged in making and selling watches, jewellery, eyewear, and others.
The Tata Group company reported 7.18% decline in standalone net profit to Rs 491 crore in Q4 FY22 from Rs 529 crore in Q4 FY21. Total income for the quarter ended March 2022 stood at Rs 7,352 crore, rising 3% from Rs 7,169 crore posted in Q4 FY21.
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