Tata Consultancy Services is the other Tata company to hit this milestone.
On Wednesday, Titan reported a strong recovery in demand in the September quarter and its sales in most of its divisions have either reached above or close to pre-pandemic levels.
The jewellery segment reported a 78% YoY growth (excluding bullion sales). It clocked 32% CAGR on a two-year basis. The segment added 13 stores in the second quarter of FY22, taking the total store count to 414. The watches and wearables division recovered rapidly, with sales acceleration witnessed across all product brands. The segment reported a 73% year-on-year growth.
In the eyewear segment, healthy growth was witnessed across all segments, with revenue rising 74% year-on-year. The segment's sales, which includes its youngest brand Taneira and fragrances and accessories, rose 121% year-on-year.
“Full unlocking and the upcoming festive/wedding season are likely to further boost revenues in the coming quarters and may offer more upsides, in our view. Factoring in the strong growth momentum, we increase our FY23/FY24 EPS estimates by 8-12%. Given the solid growth and earnings outlook, we raise our Sep’22 TP to Rs2,530 (from Rs2,000), valuing the stock at 65x Sep’23E EPS (from 55x Sep’23E EPS earlier)," said Emkay Research in a note to its investors.
Emkay Research said based on the update, it expects Titan to report a solid 64% revenue growth to ₹7100 crore. Despite the high plain gold mix, operating margins should reach normalized levels of 11.5%, thanks to strong cost savings seen in Q1 and some operating leverage. The brokerage firm estimated profit after tax of ₹550 crore against ₹200 crore in Q2FY21.