Titan rises 5% as Jewellery division shines, Management gives strong quarterly update for Q2 of FY 2020-21

Titan management says that the company's return to normalcy on the business front has been progressing well with the almost complete lifting of Covid-19 restrictions in phased manner over the last few months across the country. Titan is now gearing up to gain well from the upcoming festival season which is expected to further uplift the mood of the consumers. The business teams across divisions have acted with agility and rolled out several initiatives to realign with the new normal and serve the customers in new ways. Opening of malls have also helped the stores but the footfalls are still relatively low in these stores. As the sales are reviving at a healthy pace, the network expansion has also resumed.

Details of the three divisions are highlighted below, with the jewellery division shining and doing extremely well in Q2.

Jewellery division did very well in Q2, with a recovery rate of around 98% in Q2, compared to the revenue of the same quarter in last year. The walk-ins have been improving with conversion rates and average ticket size being higher compared to the same period of last year. The wedding jewellery segment did particularly well in the quarter. The recovery rate in metros that have got impacted the most by the pandemic has been improving gradually. Non-metros seem to have recovered substantially and many cities have actually recorded growth compared to last year.

Watches & Wearable’s division had a recovery rate of around 55% in Q2, compared to the revenue of the same quarter in last year, with a recovery of 70% in the September month. E-commerce is leading the recovery with absolute growth but the trade channel continues to pose challenges primarily due to destocking. The recovery rate for the business has been steadily increasing month on month driven primarily by increasing walk-ins to the stores. The conversion rate and ticket size (led by high-value customers) has been tracking higher compared to pre-Covid levels.

EyeWear division had a recovery of 58% in Q2, compared to the revenue of the same quarter in last year, with a recovery of 70% in the September month. After a gap of 1.5 years, the division has again started selling its products through Amazon and Flipkart, which is seeing a good response. The division is recording the highest ever Net Promoter Score (NPS) till date.

(Authored by Rahul Kamdar)