Titan records 205% jump in Q1 sales on low base. Details here
Premium- The strong sales are attributed to a low base. Further, Titan registered a 3-year CAGR of 20.5% over Q1FY20, the only non-disrupted first quarter in the last 3 years.
Gems and jewelry giant, Titan Company recorded a whopping 205% jump in sales for the first quarter ending June 2022 (Q1FY23) period compared to the corresponding period last year. The strong sales are attributed to a low base. Further, Titan registered a 3-year CAGR of 20.5% over Q1FY20, the only non-disrupted first quarter in the last 3 years.
As per the regulatory filing, on segment-wise performance, Titan highlighted that the 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, revenues nearly tripled, clocking a growth of 207%. Both walk-ins and buyers grew in line with Revenues whereas ticket size marginally improved compared to Q1FY22. Growth in plain gold jewellery was nearly 3-times whereas studded sales were comparatively higher YoY. The Studded mix was better than last year and comparable to pre-Covid levels seen during this quarter. Regional campaigns continued to yield good results.
Further, Titan stated that weddings growth was slightly lower YoY compared to revenue growth but the share in the overall pie continued to be stable. Store expansions (net) continued with the commissioning of 6 new domestic stores in Tanishq and 13 in Mia. Karama (Dubai) saw a new Tanishq store in Apr'22 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.
In the quarter, Titan added 19 new stores in the jewellery segment - taking the total to 463 stores.
Further, Titan's watches and wearables business achieved its highest ever quarterly revenue in Q1FY23 growing 158% YoY with healthy growth witnessed across all brands and products. It said, the key channels of Multi-Brand Retail (MBR), Titan World and Large Format Stores (LFS) continued on their growth trajectory from FY22. The wedding season worked well for all brands and channels, especially in April and May. Wearables growth nearly quintupled on a low YoY base whilst maintaining the momentum seen in the latter half of FY22. Store expansions (net) continued with 26 new stores of Titan World and 15 of Helios. The transformation of Titan World, Helios and Fastrack stores to newer formats offering a wider choice of premium brands continued with 28 store renovations undertaken during the quarter.
In the watches and wearables, Titan opened 39 new stores in Q1FY23 - taking the overall total to 882 stores.
According to Titan, in Q1FY23, the eyecare division posted a growth of 176% YoY 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 the cities of Bengaluru, Kolkata and Chennai. The division entered the Guinness World Records by conducting 0.13mn eye tests on a single day on April 21, 2022. The ‘Make-in-India’ Rx lens and frames production capacity is ramping up well.
During the quarter, Titan added 56 new stores in the eyecare division - taking the total stores tally to 789.
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On a standalone basis, Titan added 120 new stores in the first quarter of FY23 - taking the overall total to 2,160. This is excluding CaratLane stores.
On BSE, Titan shares closed at ₹2013.40 apiece higher by ₹62.70 or 3.21%.