Titan Q1 Update: Sales Rise On Low Base

Sales at Titan Co. were affected in the quarter ended June amid lockdowns because of the pandemic’s second wave, resulting in store closures across the country.

India’s largest branded jewellery maker said in its quarterly update that sales in the first three weeks of April were hit, and after that, most outlets reopened only in June with restrictions. Even those that were open in May witnessed muted sales, it said.

Titan’s witnessing a gradual recovery across segments along with rise in store operational days.

“The company recorded revenue growth of approximately 117% (excluding bullion sales) in Q1’22, with revenue contribution of approximately 50%, 10% and 40% coming from April, May and June respectively,” it said in its exchange filing on Tuesday.

Walk-ins in its watches and wearables, and eyewear segments recovered rapidly as stores reopened—a trend seen only in its jewellery division last year.

Here's what the company said about its key segments...

Jewellery

Sales, excluding bullion, grew nearly 107% year-on-year, the company said. That came on a low base as it witnessed a washout in April and May last year during the nationwide lockdown. Sales for June this year was only marginally ahead than that a year ago as larger states like Tamil Nadu and Karnataka were under a lockdown till most of June—to combat the pandemic’s second wave.

• The division is gaining traction among new customers and its mix in total buyers has reached the pre-pandemic levels.

• Fresh enrolments under the Golden Harvest jewel purchase plan, while adversely impacted due to the lockdowns, grew over last year and refund requests have been quite low and comparable to pre-pandemic levels.

• Over 90% stores are now open.

• Network expansion plans delayed due to lockdowns.

• The division added five Tanishq stores in the quarter, with retail space addition being approximately 20,000 sqft.

Watches And Wearables

The division grew by approximately 280% year-on-year aided by faster recovery. The northern and western regions recovered earlier, following the pattern of the pandemic waves in India. Recovery in higher-priced products is much better compared to lower-priced products, the company said. Like last year, recovery in smaller towns was better than top eight metros.

• Total store operational days were at 70%, 24% and 51% for April, May and June, respectively.

• Sales were strong in e-commerce channel, especially in the second half of April and May.

• Omnichannel sales have been gaining traction along with brand websites generating customer leads.

• The division closed two stores of World Of Titan and Fastrack each and opened three Helios stores, reducing 5,000 sq. ft. of retail space.

Eyewear

The division grew nearly 117% over last year on the back of a low base and rapid recovery in walk-ins in May and June.

• Total store operational days were at 71%, 19% and 62% for April, May and June, respectively.

• Over 90% of stores are now open.

• The division launched Titan Eyeplus mobile application and unveiled neo-progressive lens and computer glasses, exclusively for the ecommerce channel.

• During the quarter, the division added six stores, with accretion of about 1,500 sq. feet of retail space.

Other Businesses

• As many as 11 out of Taneira’s 14 stores reopened after lockdown. On average, Taneira stores were operational for about 30% of total store days in the quarter gone by.

• Fragrances and accessories business recovered slowly, but grew by three times over last year. Sales in the second fortnight of June is better than the first.

• E-commerce channels recovered almost fully and grew 2.5 times over a year ago. Being highly discretionary, all categories got impacted amid low opportunities for people to step out of home. Fragrance segment’s recovery was relatively much better.

• Titan Engineering and Automation Ltd.’s Q1 revenue declined 15% over a year ago.

• Aerospace and defence business is seeing signs of growth in single-aisle aircraft segment but company expects long-haul segment will take more time to recover.

• CaratLane’s sales grew 274% over last year. Stores were operational for 41% of days.