Titan Sees Strong Revenue Growth For Third Straight Fiscal
Titan expects sales to grow at 21 percent for the financial year ended March 2019.
Titan Company Ltd. said it witnessed strong revenue growth for the third straight financial year even as the industry is struggling with liquidity squeeze and high gold prices.
“Growth has now become broad-based across divisions, reflecting our ability to adapt and recraft according to market needs,” India’s largest branded jewellery maker by market value said in its quarterly update on the stock exchanges.
Titan, that expects sales to grow at 21 percent for the financial year ended March 2019, has also been able to keep its operating margin above 10 percent for four quarters in a row.
Here’s how Titan's verticals fared during the financial year ended March:
Jewellery Segment
Sales of the jewellery division—that comprised 83 percent of Titan’s consolidated revenue—rose 22 percent during the year, in line with its estimates of more than 20 percent, according to the quarterly update.
The company’s focus on high-value studded jewellery, which is more than one-third of the total jewellery sales along with wedding collections, continues to drive growth in the segment, according to Motilal Oswal.
Diamond Treats, Gulnaaz, Utsava and Preen were among the key collections that did well during the financial year, Titan said.
Titan opened 40 Tanishq stores, while it closed five during the year. The company had 280 Tanishq and Goldplus stores as of December, it said.
Watches And Eyewear
Revenue of the company’s watches segment grew 16 percent in the last financial year, with brands such as Titan, Fastrack and Sonata pushing up sales, according to the quarterly update.
Watches contributed 13 percent to the company’s overall revenue for the nine months ended December. Sales of ‘Smart Products’ crossed Rs 100 crore during the year. Accessories contributed another Rs 100 crore in sales.
Revenue of the eyewear segment grew at 23 percent in the financial year ended March. The number of customers increased to 35 lakh during the year from 25 lakh in 2017-18. The company intends to serve 1 crore customers by March 2023.