Titan shares rally 7% as company releases Q4 update; did elevated gold prices aid the company? Read on

Titan Company registered around 25% year-on-year (YoY) growth in standalone revenue for the quarter and around 21% for the financial year. Titan's (consolidated) retail network grew by 72 stores (net) in the quarter to reach 3,312 stores.

Jewellery (domestic operations)

Titan said that its jewellery business grew around 24% YoY on the back of a significant increase in gold prices. Both plain (gold) jewellery at nearly 27% YoY and coins at around 65% YoY, respectively, led this growth, reflecting high consumer preference for gold (adornment cum store of value).

Elevated gold prices resulted in sluggish consumer demand at lower price points, leading to single-digit buyer growth, while demand at higher price bands was sustained, resulting in a high double-digit growth in ticket sizes.

Studded jewellery registered low double-digit value (YoY) growth for the quarter.

The Solitaire segment saw a turnaround and registered both buyer and value growths in this period. Overall like-to-like (L2L) sales (secondary) were around 15% YoY.

Tanishq expanded its international network to the new markets of Sharjah in the UAE and Atlanta & Seattle in the USA. Of the 16 new store additions (net) in India, 4 stores were added in Tanishq and 12 stores were added in Mia, the company added.

Watches (domestic operations)

The company said that its Watches business recorded around 20% YoY growth in revenue. Titan, Fastrack, and Sonata propelled analogue watch growth to nearly 18% YoY. All the key retail channels of Helios, Titan World, and Fastrack grew in healthy double digits, with the Helios channel registering the highest growth (relatively), reflecting consumer liking for premium product offerings.

The division added 41 new stores in the quarter, comprising 20 stores in Titan World, 10 in Helios, and 11 in Fastrack, respectively.

EyeCare (domestic operations)

The EyeCare business grew by nearly 18%. 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 favoured by consumers for affordable fashion purchases like sunglasses. Titan Eye+ added two new stores in the UAE region, one each in Sharjah and Dubai. Division closed 11 stores (net) in India during the quarter," Titan Company said in its press release.

Emerging Businesses

In this segment, Titan said that "Fragrances" grew by 26% YoY, "Fashion Accessories" clocked around 12% YoY growth, and Taneira's sales were lower by nearly 4% 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, the company said.

Caratlane

The division registered around 22% YoY growth (in a quarter of strong gold consumer preference), driven by healthy growth in the studded portfolio. The corresponding buyer growth was in the mid-single digits, and L2L growth was around 11 % for this period. A total of 17 domestic stores (net) were added by Caratlane during the quarter.

About Titan Company

Titan Company is a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO). It is a leading Indian consumer lifestyle company, known for its watches, jewellery, eyewear, and other accessories, with a strong focus on innovation and customer experience.