Titan Co reports strong Q3 sales, boosted by festival demand

Jewelry and fashion accessory maker Titan Co said it saw a 36% growth in the last three months of 2021, boosted by strong festival demand.

Jewelry

Buoyancy in jewellery demand driven by festive purchases in October and November helped the division achieve  significant Revenue uplift for the quarter, the company said.

Revenue in this flagship unit was up 37% on year, the company said. In the corresponding quarter of last year, the company had posted revenue of Rs 6,249 cr, up 16% on year, in the jewelry division. A further growth of 37% makes it one of the best and highest top line performances for the division ever.

“Both walk-ins and customer conversions were significantly higher  compared to last year. New buyer growth was higher than total buyer growth driven partly by Tanishq’s regionalization strategy of winning in focus markets.

“While ticket sizes were stable, they were ~15% higher than  pre-pandemic levels,” it added.

“The contribution from Tier-1 towns continued to improve and were close to pre-pandemic  levels. Both plain and studded categories witnessed strong double digit growth,” the company said.

It added that studded share in the overall pie has slightly improved compared to same period last year, and there was strong demand for its Gold Harvest Scheme.

“GHS enrolments have recorded high double digit growth  rates driven by strong buyer uptick.”

Tanishq’s network expansion of 14 stores (net) includes 2 new stores in Dubai at prime locations of Dubai mall and Al Barsha.”

It said Tanishq’s Diwali collections – “Utsaah” and “Colour me Joy’ – have been well received.

Mia launched  ‘lnina’, a collection inspired by the geometric patterns and kaleidoscopic colours of Castello di Sammezzano and ‘Sway with Mia’, while sub-brand Zoya launched its collection ‘Libera’ during the quarter.  

Watches & Wearables  

The division saw strong growth momentum with multi brand channels, both online and offline, growing handsomely  in the quarter, mainly on the back of Titan brand. Premiumization journey is helping to gain higher value, said the company.

Revenue increase has been pegged at 28%. In the corresponding quarter of last year, the division had revenue of Rs 550 cr, which was down 12% compared to the year before.

“Sales from Trade and large format stores (LFS) in particular clocked higher growth followed by Retail. Tier 2 and Tier 3  towns did better than metros,” the company said. 

Titan Smart watch, launched in end December, is seeing extremely good response from customers, it claimed.

‘Titan Maritime II’ and ‘Raga  Love Alf were Titan’s new launches during the quarter. Their sales jumped 2.5x after promotions on TV, it added.

Fastrack unveiled its new brand proposition for Gen  Z – ‘You Do You’ through a series of TV campaigns and social media conversations, while Sonata launched its marquee  collection ‘Unveil, skeletal quartz designs for both men and women, during the quarter.  

Eye Wear  

The division’s strong growth was driven by Sunglasses and Frames with good demand uptick also seen in  international brands. The division accelerated its growth journey with significant network expansion during the  quarter, Titan said.

The eyewear division had seen a 7% decline in revenue during the same quarter of the previous year to Rs 124 crores.

The company launched its ‘OfficePro’ line-up covering distinct work profiles of meetings, laptop and desktop with salient features of accurate power for specific working distance, improved intermediate and near fields, and peripheral vision with no distortion.

‘Crest Bold’, ‘all acetate’ material  eyeglasses under Titan Crest brand were also launched in the quarter.  

Fragrances & Accessories, Taneira  

Brand SKINNs new campaign of ‘Feel Your Best and Fastrack women’s bags’ digital campaign on the Autumn  Winter collection on the theme of ‘Wear it Your Way’, both were very well received, according to the company’s quaterly update.

Good growth was witnessed  across all retail and departmental stores in the quarter, it said.

‘Taneira’ opened 2 stores (Noida and Bangalore) taking the total store count for the business to sixteen covering  seven cities. The brand’s launch on multimedia elements along with Navratri micro-influencer  campaign showed good traction amongst the customers during the festive period, it said. 

Titan Engineering and Automation Limited

The company’s Automation Solutions Business saw a significant improvement over the previous year and is showing  encouraging signs in the market with new orders coming in from different industry verticals with exports showing  similar traction, the Tata Group company said.

The Aerospace Business though continuing to face challenges is showing initial signs of recovery.

Caratlane

Caratlane jewelry retail business continued to push its omni-channel strategy to achieve what the company called robust growth in sales during the festive period.

“Studded share as part of the overall pie witnessed strong gains.

“Growth was well distributed  with strong momentum witnessed even across lower ticket sizes. In December, Company opened its first ever  airport store at Bengaluru and also went live with Caratlane’s US website.”

‘Dunes’ collection launched during the  quarter received good response, it added.