About the company:
Titan Company Limited is an Indian multinational company and a part of the Tata Group, headquartered in Bengaluru, India. It is a leading lifestyle brand known for its diverse product portfolio, including watches, jewelry, eyewear, and accessories. Titan owns popular brands like Titan, Fastrack, Sonata, Tanishq, Mia, Zoya, and Eye+, among others. The company has a strong retail presence in India and international markets, focusing on innovation, craftsmanship, and customer experience. Titan continues to expand into new lifestyle segments, making it one of India’s most trusted consumer brands.
Segment Performance:
Jewellery (Tanishq, CaratLane, Mia)
Strong 22% Same-Store Sales Growth (SSG) in Q3.
Gold jewellery demand surged due to rising gold prices.
Studded jewellery growth impacted by gold price volatility.
EBIT margin expected to remain 11%–11.5% annually.
High-value sales and wedding collections performed well.
Watches & Wearables (Titan, Fastrack, Sonata, Xylys)
Strong double-digit growth, driven by premium brands.
Fastrack (+33% growth) & Sonata (+24% growth) outperformed expectations.
Wearables category undergoing strategy revision, focusing on high-end smartwatches.
Eyewear (Titan Eye+, Fastrack Eyegear)
Grew steadily with higher store expansions & digital sales.
Premium & prescription eyewear led growth.
Fragrances & Accessories (Skinn, Fastrack, Taneira)
Taneira (ethnic wear) saw flat growth but strong 30% retail growth.
Expansion focus shifting towards metros & Tier-1 cities.
Key Strategic Updates:
Expanding stores in premium locations.
Increased focus on e-commerce & omnichannel strategy.
Gold price fluctuations impacting margins, but demand remains strong.
CaratLane reported strong 16% SSG growth, focusing on new product innovation.
Outlook & Challenges:
Jewellery segment remains a key growth driver, despite gold price fluctuations.
Premium watch & eyewear categories expected to see continued demand.
Wearables & fragrance businesses under strategic revamp.
Macroeconomic factors (gold price, global trade issues) could impact short-term growth.
Here is a summary of Titan Company’s financial performance over the last three quarters (Q1 FY25, Q2 FY25, and Q3 FY25):
| Financial Metrics | Q1 FY25 | Q2 FY25 | Q3 FY25 |
|---|---|---|---|
| Revenue (₹ Crores) | 10,271 | 12,730 | 13,286 |
| EBIT (₹ Crores) | 1,248 | 1,461 | 1,350 |
| EBIT Margin (%) | 12.2% | 11.5% | 10.2% |
| Net Profit (₹ Crores) | 756 | 940 | 983 |
| Net Margin (%) | 7.4% | 7.4% | 7.4% |
| Free Cash Flow (₹ Crores) | 178 | 250 | 199 |
| Jewellery SSG Growth (%) | 18% | 15% | 22% |
| CaratLane SSG Growth (%) | 14% | 21% | 16% |
| Watch Segment Growth (%) | 9% | 12% | 15% |
Recent updates:
Highlights from last con call:
Financial Performance:
Revenue: ₹13,286 crores, up 1.3% YoY.
EBIT Margin: 10.2%, improved 60 bps QoQ.
Net Profit: ₹983 crores, with a 7.4% net margin.
Free Cash Flow: ₹199 million, with 172% PAT conversion.
Net Debt: ₹6,841 crores (cash & equivalents)