News

Published: July 8, 2023
Updated: July 8, 2023

Titan Company Achieves Remarkable Q1FY24 Growth, Outperforms Market with 25% Rise in 2023

Titan Company, a leading consumer business conglomerate, has reported impressive revenue growth of 20% YoY during the April-June quarter (Q1FY24). Despite a subdued market, the company's shares soared 3% to a new high of Rs 3,205.45. With a 25% rise in 2023, Titan has outperformed the benchmark index's 7.5% growth.

Jewellery Division Shines:

The jewellery division of Titan showcased a satisfactory performance, witnessing a robust 21% YoY growth in Q1FY24. Notably, buyer growth surpassed the average ticket size growth during this period. Despite significant volatility in gold prices, sales remained strong during Akshaya Tritiya in April and wedding season purchases in June.

Expanding Retail Presence:

Titan expanded its retail presence by adding a total of 68 stores, including CaratLane, during the quarter, bringing the company's retail footprint to an impressive 2,778 stores. This expansion strategy highlights Titan's commitment to capturing a larger market share.

Watches Division Reports Solid Growth:

The watches division of Titan reported a notable 13% YoY sales growth in Q1FY24. Wearables experienced a substantial 84% YoY increase, indicating a growing consumer preference for smart and connected devices. CaratLane, a subsidiary with a 72% ownership, also achieved impressive growth of 32% YoY.

Titan's Secular Growth Story:

Titan has consistently gained market share from unorganised players, positioning itself as a secular growth story. Despite challenging demand conditions, Tanishq, a prominent brand under Titan, delivered healthy results. The company aims to achieve a 2.5x increase in jewellery revenues by FY27, indicating an implied CAGR of 20% from the FY22 base.

Analysts' Outlook:

Industry analysts at ICICI Securities and Prabhudas Lilladher share an optimistic outlook for Titan. They highlight robust jewellery demand, improved product mix, the benefits of hallmarking, expansion plans for eyewear stores, accelerated store openings for watches, and the growth potential of emerging businesses like Taneira and wearables as major drivers for future growth.

Titan Company's outstanding Q1FY24 :

Excellent performance, marked by strong revenue growth and a surge in share prices, demonstrates its resilience and ability to thrive in the market. With a focus on expanding its retail presence, capitalizing on emerging trends, and delivering exceptional results across its consumer businesses, Titan is poised for continued success in the coming years.