Titan Q3 Business Update: Revenue rises 36% YoY
Titan, the world's fifth-largest wrist watch manufacturer, updated the exchanges on its Q3 numbers on Thursday. The company is in the manufacturing of watches, jewelry, precision engineering, and Eyewear. It reported a strong Q3 number with high jewelry demand in October and November because of festivals like Dhanteras and Diwali.
Increase in revenue - The company reported an increase in revenue by 36% YoY for the December quarter. The jewelry segment which is the core business contributed 80% of the total revenue and rose 37% compared to the December 2020 quarter. The watches and wearables segment revenue increased by 28% and 27%, respectively. Among the key subsidiaries, Titan Engineering and Automation's revenue contracted 9% YoY, while CaratLane rose 64%.
Watches and Wearables segment - The division saw growth momentum with multi-brand channels, both online and offline, growing in the December quarter. Sales from trade and large format stores clocked higher growth. It was followed by retail. Tier 2 and Tier 3 towns did better than Metros.
Other Business - It includes Fragrances And Accessories, Taneira. The revenue increased by 44% for this segment. Good growth was seen across all departmental and retail stores.
More stores opened - Titan added 89 stores across all business segments. As of 31 December 2021, the total store count reported by the company was 1935. The jewelry segment lodged 408 stores, watches and wearables saw 809 stores, the eyewear sector saw 682 stores and other businesses registered 16 stores. CaratLane also added 6 stores to its repertoire, taking its total count to 129.
Motilal Oswal - The firm said in its report, Titan’s shares now trade at 80 times the estimated earnings for the financial year 2023. The stock’s stellar returns and expensive valuations may well limit significant upsides in the near future.
The stock closed at Rs 2,571 on Friday. Earlier on Friday morning, it touched its 52 weeks high of Rs 2,687. We will keep you posted on its detailed Q3 numbers, once announced.