Titan Company gained 1.39% to Rs 1547.10 after the company said it recorded very strong revenues in Q4 March 2021.
Titan on Wednesday said it continued to witness strong business momentum as the Covid impact on the consumer sentiments seemed to fade in the early part of the quarter. After recording the best ever revenue in Q3, which was a festive season, the company again recorded very strong revenues in Q4.Titan said its jewellery division emerged very strongly from the crisis and witnessed strong growth in the quarter, the Watches & Wearables and the Eyewear divisions also made very good progress on recovery. However, Titan said that the second half of March 2020 was impacted by the emerging Covid situation.
The company recorded strong revenue growth of 60% for the overall Q4 due to low base of March 2020, with revenue growth of over 36% in the comparable January & February months. Q4 reported revenue growth was further aided by a large B2B gold coin order that contributed about 8% of the growth.
For the International Business Division, the performance of its Dubai Boutique has exceeded the internal expectations and all the retail metrics are quite healthy. The division is now planning to open another store in GCC. The division took over 10 kiosks of Watches from the existing business partner in GCC.
Titan's jewellery division continued to see the strong sales momentum in Q4, reflecting the strong market share gains. Sharp decline in gold prices during the quarter also gave impetus to the consumer demand for the industry. The company said that the Q4 also had a large B2B order in the quarter, contributing to about 10% of the quarter's growth. The retail and reported revenue growth for the first two months was about 32%. Reported revenue growth for the quarter was 70% due to the low base of March month in the previous year.
Despite the 70% loss in retail sales in Q1 due to lockdowns, the division has exceeded the retail sales of previous year on a full year basis. The ticket size has been normalized compared to the initial period of the year after the lockdown, though it is still much better than last year levels. Significantly, the number of buyers (invoices), has moved from near full recovery in Q3 to strong double digit growth in Q4, leading to strong revenues from these two factors. With the strong buyer's growth, the GHS enrollments has also recorded strong double-digit growth. The division added 26 Tanishq stores on a net basis in FY 2021, with the retail space addition being ~123K square feet
Caratlane delivered a growth of 60% for the quarter continuing its strong growth trajectory. Despite the challenges at the start of the year, for the full year FY 2021, the Caratlane B2C business grew at 26%.
The company's Watches & Wearables division had a recovery rate of close to 90% for the first two months of the quarter and had flat reported revenue in Q4 compared to last year. Titan launched the Edge Mechanical, the slimmest mechanical watch by Titan, with a 2.2 mm slim in-house hand-wound movement. This collection heralded Titan's entry into the rarefied world of luxury mechanical watches. In FY2021, the division added 13 World of Titan (WOT) stores, 11 Helios stores and closed 13 Fastrack stores, on a net basis, adding 1.5 K sq. ft. of retail space
Eye Wear division's revenue grew by 20% in the quarter, with the growth in the first two months being 4%. In FY 2021, the division added 15 stores on a net basis, with addition of about 1.8 K sq. feet of retail space.
The company's other businesses had a revenue recovery of around 80% in Q4, compared to the revenue of same quarter in last year. Taneira continued to recover well with 93% recovery in Jan & Feb month, however, accessories business was drag on the segment. In Fragrances, sales recovered 80%. Sales in the World of Titan stores has started growing at 7%. Ecommerce continues to grow with customers moving to online purchasing. Sales in LFS continue to lag compared to other channels.
Titan Engineering and Automation Limited (TEAL), a wholly owned subsidiary of the company, had a revenue decline of 26% in Q4 as the aerospace business continues to face challenges due to the continued headwinds in the industry. Titan noted that the automation business vertical is however showing good signs of revival with the increase in the enquiries for automation solutions in the recent past and improving order book.
Titan Company is engaged in making and selling watches, jewellery, eyewear and others. The Tata Group company posted a 10.85% decline in standalone net profit to Rs 419 crore on 17.64% rise in total income to Rs 7,324 crore in Q3 FY21 over Q3 FY20.
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