Titan shares rally to trade near all-time high after strong Q2 update

Shares of Titan Ltd rallied more 5% to ₹2,744 apiece on the BSE, trading near its all-time high level, in Friday's opening deals after the company said its overall sales grew 18% year-on-year (YoY) in the September quarter (Q2 FY23) and added 105 stores in its retail network in the second quarter of the current fiscal.

The company, which operates in the segments as Jewellery, Watches & Wearables, and EyeCare in its quarterly update said that it “witnessed healthy double-digit growth across most businesses with overall sales growing 18% YoY. Retail network continued the pace of expansion adding 105 stores (net) for the quarter. The outlook for festive season (from Navratri in end September 2022) continues to be optimistic and is visible in positive consumer sentiment across categories.”

The jewellery division grew 18% YoY on a high base of Q2FY22 that had elements of pent-up demand and spillover purchases of a Covid disrupted Q 1 FY22. The product-mix improved compared to last year but continued to be below pre-pandemic levels. New store commissions (net) comprised of 8 domestic stores in Tanishq, 16 in Mia by Tanishq and 1 in Zoya.

Meanwhile, the watches and wearables division grew 20% YoY, clocking its highest quarterly revenue. The division continued its store expansions pan-India (net) with 7 new store additions of Titan World, 14 of Helios and 2 in Fastrack for the quarter.

In the Eyecare segment, its Titan Eye stores saw healthy double-digit growth. However, the same was offset by lower YoY sales across Trade & Distribution channel, leading to an overall 7% growth for the division. Titan''s Fragrances & Fashion Accessories grew 34 YoY, driven by 37 per cent growth in Fragrances and 29% growth in Fashion Accessories.

Caratlane (72.3% owned subsidiary) business grew 56% YoY driven by promotions around Raksha Bandhan and hero launches during the quarter. “Across categories, solitaires grew the fastest followed by studded and gold jewellery. Studded continued to contribute ~ 70% of the business despite a larger base as compared to last year,” it said.

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