Strong Sales in Gold Coins, Jewellery Drove Q4 Higher; Shares Gain
As the impact of Covid on consumer sentiments faded in the early part of the quarter, the Company continued to see strong business momentum. Titan Company reported a 60% increase in revenue in the March quarter, helped by a low base in the previous quarter, improved market momentum, and a drop in gold prices.
In Q4, there was also a large B2B order, which accounted for about 10% of the quarter's growth. For the first two months, retail and reported revenue (excluding B2B sales) grew by 32 percent.
Titan is the owner of the Tanishq jewellery stores in India. On a net basis, 26 new stores were added in FY21. According to the company, it made gains in the wedding jewellery market during the fiscal year as a result of local market innovations.
Wedding jewellery has been a strong growth driver for the year, with its share of overall jewellery revenue increasing significantly over the previous year.
While the jewellery division has made a strong recovery and experienced strong growth in the quarter, the Watches & Wearables and Eyewear divisions have also made significant progress. However, it should be noted that the emerging Covid situation impacted the second half of March 2020.
Due to the low base of March '20, the Company saw strong revenue growth of 60% in the fourth quarter, compared to revenue growth of over 36% in the comparable January and February months. Q4 revenue growth was aided by a large B2B gold coin order, which accounted for 8% of the total.
Caratlane continued its strong growth trajectory with a 60 percent increase for the quarter. Despite the challenges at the start of the year, the Caratlane B2C business grew by 26% for the full year FY'21. Shaya, Caratlane's silver and alternate metals brand, saw a 136 percent increase in sales last year.