Titan reported a 50% YoY growth in its Q4 net profit to ₹734 crore.- The growth was aided by a comeback in the wedding segment, which grew at a slightly faster pace than the overall retail segment.
- Titan also said its net store count went up by 173 in Q4, taking the total store count to 2,710 at the end of FY23.
Aided by wedding season demand, Titan’s revenue from operations in Q4 grew 33% YoY to ₹9,704 crore, while for the full FY23, the revenue grew 40.7% to ₹38,270 crore.
Its earnings before interest and taxes (EBIT) rose 37% YoY to ₹1,053 crore during the quarter, while EBIT margins rose to 12% in Q4 from 11% a year ago.
“The year gone has witnessed several firsts in the history of Titan. The jewellery, watches & wearables and eyecare achieved landmark milestones of ₹30,000 crore, ₹5,000 crore and ₹1,000 crore of annual consumer retail sales respectively for the first time in their retail journeys,” said CK Venkataraman, MD, Titan Company.
The company declared a dividend of ₹10 per share.
Jewellery business’ share in the company’s topline stood at 89% in Q4, witnessing a marginal decline from a year ago. The watches and wearables segment, on the other hand, inched up to 9%, eating into the share of the jewellery business.
“Higher price bands continued to see better growths. The studded mix was also higher for the quarter, sequentially, due to the seasonal activation, and also higher YoY compared to the same period last year,” the company said in a press release.
The company also opened its first Tanishq store in the USA and a Titan Eye+ store in Dubai this year. Its net store count went up by 173 in Q4, slightly faster than the previous quarter when the company added 129 stores. Titan’s overall store count came in at 2,710 across 404 towns at the end of March 2023.
“Competitive intensity on gold rates continued to remain high. Margins in the studded category normalized to pre-Covid levels with consumption of older lower cost diamond inventory getting over in Q3FY23,” the company said.
Titan’s Q4 and FY23 in numbers:
Source: Company reports
The jewellery segment continued to deliver fast growth in the March quarter, only slightly slower than the watches and wearables segment.
Titan’s watches and wearables segment includes brands like Titan, Fastrack, Raga by Titan, and Tommy Hilfiger, among others.
“Buyers’ growth at 15% YoY, both new and repeat, way a key catalyst. Average ticket sizes too saw significant improvement, growing at 8% YoY,” the company said in its earnings call.
Source: Company reports
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