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Jewellery and watchmaker Titan Company Ltd expects 25 per cent growth in revenue in the March quarter, driven by watches, wearables and emerging business segments. The Tata group company said all its key businesses saw double-digit growth in the last quarter of FY23.
The company added a total of 173 stores in the quarter (including CaratLane) and ended the year with a store network of 2,710, it said in an exchange filing. Of the total, 52 stores were opened for its watches and wearables business followed by 38 stores for its eyecare business.
Low base effect
“The base quarter of Q4 FY22 carried the adverse impacts of partial lockdowns due to the Omicron wave and weak consumer sentiments caused by a fragile geopolitical situation due to the onset of the Russia-Ukraine war,” the company said.
The jewellery division clocked 23 per cent year-on-year growth with a revival in wedding sales and normalisation in buyer growth for entry-level purchases. “The performance was particularly encouraging at a time when there was a significant rise in gold prices and growth in discretionary categories appears to be under pressure. Network expansion continued to progress well throughout the quarter. The outlook remains robust with positive consumer sentiment across all categories,” said Amnish Aggarwal – Head of Research, Prabhudas Lilladher Pvt Ltd.
The watches and wearables category saw a 41 per cent y-o-y growth, led by analogue watches and trebling of revenues from wearables. “This led to the business hitting a significant milestone of ₹5,000-plus crores of Uniform Consumer Price (UCP) sales for FY23,” the company stated.
Growth drivers
The eyecare business recorded a sales growth of 22 per cent while its emerging business — fragrance and fashion accessories — witnessed a 31 per cent year-on-year growth driven by 35 per cent growth in fragrances and 24 per cent growth in fashion accessories.
“We believe that robust jewellery demand, improved mix and hallmarking benefits, aggressive store expansion of 250-300 in eyewear and acceleration in store openings in watches and scale up in emerging businesses like Taneira and wearables will be the major growth drivers for Titan going forward,” Aggarwal said.
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