Watch-to-jewellery major Titan Company on Friday reported record growth in its top and bottom line results, on the back of low-base effect as well as robust festive demand in a near normal quarter that came after a gap of two Covid disrupted periods of Q1 FY21 and Q1 FY22. The broad-based growth across all businesses and better realisations across all key divisions also boosted the June quarter earnings.
The Tata group company has posted a year-on-year (YoY) growth of 1,200% or 13 times in its standalone profit after tax at ₹793 crore in the first quarter ended June 30, 2022, compared to ₹61 crore in the year-ago period. On a sequential basis, the profit rose 61.5% from ₹491 crore in March quarter of 2022 (Q4 FY22).
Total income for the quarter stood at ₹8,961 crore, up 176% from ₹3,249 crore in Q1 FY22 and 23% higher on quarter-on-quarter (QoQ) basis.
During the quarter under review, standalone EBIT stood at ₹1,121 crore with margins at 13%, which was the best for the Q1 period and second best overall in the last 3 years.
As per the company, all key divisions - jewellery, watches and eyewear - recorded healthy margins aided by better realisations across product categories.
Jewellery business posted revenue of ₹7,600 crore in Q1 FY23, compared to ₹2,467 crore in the corresponding period last year, (excluding bullion sale), a growth of 208% riding on a good Akshaya Tritiya sales and a better studded mix compared to the same quarter previous year.
Watches and wearables segment registered its best quarterly income of ₹785 crore with 169% growth in Q1 FY23, compared to ₹292 crore in the year-ago period.
Similarly, eyecare vertical also reported its highest quarterly income of ₹183 crore, up 173% compared to ₹67 crore in Q1 FY22.
Other businesses comprising Indian dress wear and Fragrances & Fashion Accessories reported an income of ₹56 crore in Q1 FY23, a growth of 300% as compared to ₹14 crore in the same period last year.
As per the company, it added (net) 125 stores during the year. As of June 2022, the company's retail chain (including Caratlane) has 2,303 stores across 366 towns with an area exceeding 2.9 million square feet.
Commenting on Q1 earnings, CK Venkataraman, managing director, says, "The financial year has begun well for us and we delivered a strong performance in Q1 across our business segments. Despite the challenging macro environment, the outlook for the remaining quarters looks positive and we continue to execute our investment plans in India as well as chosen international geographies."
Following Q1 results, Titan shares closed 0.39% higher at 2,432.55 levels on the BSE on Friday. The Rakesh Jhunjhunwala portfolio stock has been gaining for the last 8 trading sessions and has risen 6% during the same period. The largecap stock has given 35% returns to its shareholders in the past one year, while it has fallen 3.6% in the calendar year 2022. However, the stock has gained momentum in the past one month, with share price surging nearly 25% on robust quarterly sales.