Q1FY23 was a near normal first quarter after a gap of 2 years. Sales in Q1FY23 grew 205% YoY on a low base and clocked 3-year CAGR of 20.5% over Q1FY20, the only non-disrupted first quarter in the last 3 years. The network expansion and campaigns continued to progress well throughout the quarter.
The Division had a good start to FY23 with robust sales on the auspicious occasion of Akshaya Tritiya (AT) in May month after 2 years of Covid induced lockdowns in this period. On a low YoY base, Revenues nearly tripled, clocking a growth of 207%. Both walk-ins and buyers grew in-line with Revenues whereas ticket size marginally improved compared to Q1FY22. Growth in plain gold jewellery was nearly 3-times whereas studded sales was comparatively higher YoY. Studded mix was better than last year and comparable to pre-Covid levels seen during this quarter. Regional campaigns continued to yield good results. Weddings growth was slightly lower YoY compared to revenue growth but the share in the overall pie continued to be stable. Store expansions (net) continued with commissioning of 6 new domestic stores in Tanishq and 13 in Mia. Karama (Dubai) saw a new Tanishq store in Apr'22 with an encouraging initial response. Retail metrics of sales growth, walk-ins, conversions and jewellery mix including studded ratios continued to be healthy across all international stores.
Tanishq's pan-India campaigns for new collections of 'Live a Dream' and 'Rhythms of Rain' and regional campaigns of 'Uttama' for Poila Baisakh in West Bengal (WB) and 'Rajadhiraj' for Lord Jagannath Yatra in Odisha and WB were well received. 'Wavemakers', 'Mia for Kids', and 'Gift Smart Gift Mia' were few notable Mia campaigns for the quarter. Zoya's campaigns centered on its new collections of 'AETERINA', 'ANEW' for AT and 'Infinitely Her'- a digital only campaign for polki collections.
Watches & Wearables
The Division achieved its highest ever quarterly revenue in Q1FY23 growing 158% YoY with healthy growth witnessed across all brands and products. The key channels of Multi-Brand Retail (MBR), Titan World and Large Format Stores (LFS) continued on their growth trajectory from FY22. The wedding season worked really well for all brands and channels especially in April and May. Wearables growth nearly quintupled on a low YoY base whilst maintaining the momentum seen in the latter half of FY22. Store expansions (net) continued with 26 new stores of Titan World and 15 of Helios. The transformation of Titan World, Helios and Fastrack stores to newer formats offering a wider choice of premium brands continued with 28 store renovations undertaken during the quarter.
Titan launched several new products in this quarter - including Raga Ceramics and a new range of Titan Mechanicals. Titan Solar was launched to commemorate World Environment Day - crafted using recycled brass, vegan leathers and powered by an in-house solar movement. Two bold new campaigns - a) Titan Fashion Hues showcased colour plated watches and b) new Titan Raga campaign introduced Alia Bhat as the new face of the brand, with a proposition of #Boldly Beautiful creating excitement around the brand. Fastrack proudly showcased its new collections of 'Stunners 3', 'Tick Tock 1.0', 'Exuberant', 'Uptown Retreat 2.0' and 'Topicals 1.0'. Sonata launched 'Utsav', a wedding collection at value price points. The Wearables segment saw a series of launches by both Titan and Fastrack. Titan's 'Smart 2' featuring a superior AMOLED display and Fastrack's 'Fastrack Reflex Curve' and 'Fastrack Reflex Watch' smartwatches together with the existing range cover multiple price points with rich looks and features.
The Division's growth of 176% YoY was led by both Titan Eye Plus (TEP) and Trade & Distribution channels. The journey to reach 1,000 TEP outlets pan-India by end of FY23 accelerated with 56 new store additions for the quarter across cities of Bengaluru, Kolkata and Chennai. The division entered the Guinness World Records by conducting 0.13mn eye tests on a single day on April 21st 2022. The 'Make-in-India' Rx lens and frames production capacity is ramping up well.
Other Businesses - Fragrances & Fashion Accessories, Indian Dress Wear
Growth in Trade, LFS and E-commerce channels contributed to a 271% yearly increase for the division. Individually, Fragrances grew at 262% YoY whereas Fashion Accessories grew 293% YoY. Brand SKINN tapped into the premium segment with 'SKINN Nox' - Own the Night in both Homme & Femme variants. Fastrack launched the 'Wear it your way' collection introducing new sub-categories of commuter bags and small totes worn in fun ways to let youngsters express their authentic selves.
Indian Dress Wear sales grew nearly seven times for the quarter (608% YoY). Brand Taneira expanded its national presence by adding 6 stores in the quarter. With 2 new store openings in Kolkata, brand made a significant foray in the East market and also simultaneously strengthened its position with an additional store each in Hyderabad & Bengaluru. The stores are now spread across ten cities pan-India (Bengaluru being largest with 7 stores). With an enviable ethnic range catering to major regional diaspora, Taneira is fast emerging as one of the key players in the sarees category. The brand launched 'Summer Sorbet' - a unique collection of handcrafted sarees and ready to wear kurta sets in light weaves and delightful craftsmanship celebrating the joys of the season. The 'Wedding Weaves' campaign consisting of 6 short films and visuals celebrating the different relationships of a bride garnered more than 2.1mn views on YouTube.
Transformation of the Weaver ecosystem by supporting them with technical expertise and improving their working conditions is at the heart of Taneira's offerings. The initiative branded 'Weavershala' will enable the next generation of weavers to continue to work in a clean work atmosphere with dignity and earn respectfully. Two 'Weavershalas' were launched in Q1 near Varanasi and work is underway to launch more in the next quarters.
Titan Engineering & Automation Limited (TEAL) (Wholly-owned)
The Business grew by 35% YoY with both the divisions, Automation Solutions (AS) and Aerospace and Defence (AD) growing in-line with the overall Revenues. AS business had a low double digit decline in inflow of orders during the quarter as compared to last year. The AD business, however, more than doubled its order inflow compared to last year same quarter and is signaling healthy signs of revival for the sector. Together, the overall order inflow growth for TEAL was in mid-teens.
CaratLane (72.3% owned)
CaratLane's strategy for Q1 centered on engaging and attracting customers for AT. With markets open after a gap of 2 years, a very positive consumer sentiment helped CaratLane achieve its highest ever sales on the day of AT (20% higher than Dhanteras of 2021). 'Borla' a hero collection inspired by classic Rajasthani maang tikka along with an AT activation saw good buying interest. The 'First Salary' gifting campaign for new occasions was well received with #MyFirstSalary trending on No.2 position nationally reaching over 190mn users and garnering 2.5mn views.
The above information for the period ended 30 June 2022 is provisional, and subject to Limited Review by the Statutory Auditors of the Company.
Shares of Titan Company Limited was last trading in BSE at Rs. 2013.40 as compared to the previous close of Rs. 1950.70. The total number of shares traded during the day was 34310 in over 3571 trades.
The stock hit an intraday high of Rs. 2025.35 and intraday low of 1942.45. The net turnover during the day was Rs. 68171226.00.