The Titan Company quarterly update for September 2020 was above the expectations. Titan’s cost reduction initiative, the ‘War on Waste Programme’, has been implemented a few quarters back and is tracking internal targets and projects.
The jewellery segment that contributes around 77 % to revenues and 80 per cent to operating profit revived back in the September quarter, with revenue recovering to around 98 per cent excluding the sale of raw gold year-on-year. Sales in the month of September were good, despite the inauspicious period of Shraddh. Higher sale of gold coins during the quarter is seen, reflecting customers’ preference to invest in gold as an asset class and the wedding jewellery sale is considerable in the quarter. The jewellery segment added 14 Tanishq stores in FY21 till date adding 60,000 square feet of retail space.
The watches and wearable’s division had a recovery rate of around 55% in the September quarter year-on-year. E-commerce and increase in walk-ins increased sales. WFH impacts sales too. Till date in FY21, Titan has added nearly 3,000 square feet of retail space on watches and wearables. The EyeWear division saw 58% recovery and after a gap of 1.5 years, it again started eCommerce through Amazon and Flipkart. For FY21, 42 stores were closed and 15 were added newly.
‘Taneira’ the saree brand launched its first store in Chennai in September, increasing the number to 13. The e-commerce channel did well during the quarter. TEAL (Titan Engineering and Automation Ltd – 100% owned subsidiary) has seen a decline in revenue of 15 % during the quarter. It possesses the bigger size orders for supplying components for ventilators and medical devices capable of detecting TB & Covid-19. Carat Lane saw a strong 14% recovery in the quarter. The growth was mainly driven by online demand. 5 new stores have been added in the quarter. Titan is reviving itself well from the pandemic. It continues to invest in its products as well to maintain its parentage, brand and to uphold its market position.
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