{"id":155757,"date":"2023-11-03T13:17:08","date_gmt":"2023-11-03T17:17:08","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155757"},"modified":"2023-11-03T13:17:44","modified_gmt":"2023-11-03T17:17:44","slug":"titan-company-ltd-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Titan Company Ltd Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Titan Company Ltd (TITAN) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Jewelry Business Growth<\/strong>\n<ul>\n<li>Jewelry business saw strong 27% growth in customer price terms in Q2.<\/li>\n<li>Primary sales growth was lower at 20-21% due to higher discounts and promotions vs. last year.<\/li>\n<li>Underlying jewelry demand momentum remains robust.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Outlook<\/strong>\n<ul>\n<li>GM expected to remain stable for most segments except some impact in jewelry business.<\/li>\n<li>Jewelry business margins may see some dilution over next 6-7 months due to inventory effect of diamond price corrections.<\/li>\n<li>Impact is not expected to be very material.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Tanishq vs. CaratLane<\/strong>\n<ul>\n<li>Tanishq gaining share in high value gold and diamond jewelry segments given low existing share.<\/li>\n<li>50% of Tanishq&#8217;s growth driven by ticket size increase, rest by new buyers.<\/li>\n<li>CaratLane focused on affordable jewelry segment where scope for ticket size increase is limited.<\/li>\n<li>CaratLane growth more buyer-driven, especially in sub-50k price points.<\/li>\n<li>New buyer growth for Tanishq much higher in greater than INR2 lakh ticket sizes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Buyer Profile<\/strong>\n<ul>\n<li>New buyers contributed 48% of jewelry sales.<\/li>\n<li>Typically start at lower ticket sizes of greater than INR75,000 when sampling brands.<\/li>\n<li>Migrate to higher tickets of INR2 lakh plus over 3-4 years.<\/li>\n<li>Largely traditional plain gold buyers shifting from unorganized sellers.<\/li>\n<li>Metros and bigger cities also see studded buyers in Mia and Tanishq sub-50k range.<\/li>\n<\/ul>\n<\/li>\n<li><strong>International Tanishq Performance<\/strong>\n<ul>\n<li>Opened 13 Tanishq stores outside India including Singapore, Houston, Qatar.<\/li>\n<li>Performing well with high studded jewelry sales shares.<\/li>\n<li>Getting good repeat customer traction.<\/li>\n<li>Recently opened first international MIA store in Dubai.<\/li>\n<li>Helping attract non-Indian customers too.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Zoya Expansion<\/strong>\n<ul>\n<li>Currently has 8 stores, targeting 15 stores by next Diwali festival.<\/li>\n<li>Besides standalone stores, Zoya also present in Tanishq galleries.<\/li>\n<li>Consumer sales was INR140 crores last year, targeting 50% growth this year.<\/li>\n<li>Margin profile better than Tanishq given 95% studded jewelry.<\/li>\n<li>All stores are currently company owned, may evaluate franchise model.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Lab Grown Diamond Impact<\/strong>\n<ul>\n<li>Currently limited impact in India, more prevalent in US bridal segment.<\/li>\n<li>Price of lab grown diamonds crashing, causing issues for retailers selling both.<\/li>\n<li>In India, natural diamonds have stored value and investment appeal.<\/li>\n<li>No demand for lab grown diamonds seen currently in India.<\/li>\n<li>Will monitor impact over next 3-5 years and explore options accordingly.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New vs. Repeat Buyer Contribution<\/strong>\n<ul>\n<li>Typically see 47-53% split between new and repeat buyers.<\/li>\n<li>Skewed towards repeat buyers in mature stores, new buyers in new stores.<\/li>\n<li>Repeat buyers spend 2-3x more over lifetime at Tanishq.<\/li>\n<li>For CaratLane and Mia, repeat buyers buy more frequently but at similar ticket sizes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Performance and Outlook<\/strong>\n<ul>\n<li>Sharp expansion in margins excluding bullion to 14%.<\/li>\n<li>Q2 typically has higher margins than Q1 due to festive diamond activations.<\/li>\n<li>This year margins normalized, decline of 1.3-1.4% versus last year.<\/li>\n<li>Higher studded share, better gold portfolio realizations helped margins.<\/li>\n<li>Guidance of 12-13% gross margins for jewelry division remains consistent.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Titan Company Ltd (TITAN) Q2 FY24 Earnings Concall Jewelry Business Growth Jewelry business saw strong 27% growth in customer price terms in Q2. Primary sales growth was lower at 20-21% due to higher discounts and promotions vs. last year. Underlying jewelry demand momentum remains robust. Margin Outlook GM expected to remain stable [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,6351,392,12],"tags":[10169,9716,8693,8145,9717],"class_list":["post-155757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-consumer-stocks","category-earnings","category-other-industries","tag-earnings","tag-eyewear","tag-jewelry","tag-retail","tag-watches"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":158307,"url":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155757,"position":0},"title":"Titan Company Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 2, 2024","format":false,"excerpt":"Key highlights from Titan Company Ltd (TITAN) Q3 FY24 Earnings Concall Jewelry Business Tanishq sales growth slowed in Q3 due to timing of Shradh festival between Q2 and Q3 this year vs last year. Gold price increase in December 2022 led to hesitancy in customer purchases. Margin declined 80 bps\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":144958,"url":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155757,"position":1},"title":"Titan Company Ltd Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 4, 2023","format":false,"excerpt":"Key highlights from Titan Company Ltd (TITAN) Q4 FY23 Earnings Concall Q&A Highlights: [00:03:48] Avi Mehta with Macquarie enquired has jewelry demand and growth trends changed in March and April due to gold price hikes. Ajoy Chawla CEO Jewellery replied that jewelry demand softened in March and early April due\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":135707,"url":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155757,"position":2},"title":"Titan Company Ltd Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"November 7, 2022","format":false,"excerpt":"Key highlights from Titan Company Ltd (TITAN) Q2 FY23 Earnings Concall Q&A Highlights: [00:02:41] Abneesh Roy of Nuvama asked about the reason for studded ratios in jewelry being lower vs. pre-COVID levels. Ajoy Chawla CEO Jewellery said that it was due to 2Q20 being slightly abnormal quarter due to gold\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":133875,"url":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155757,"position":3},"title":"Titan Company Ltd Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 5, 2022","format":false,"excerpt":"https:\/\/youtu.be\/GGTQQHNOR7U Key highlights from Titan Company Ltd (TITAN) Q1 FY23 Earnings Concall Q&A Highlights: [00:02:36] Avi Mehta of Macquarie enquired that with the steep custom duty increase in jewelry, and the resultant consumption scenario and competitive landscape changing, if there is any risk in TITAN\u2019s ability to reach 2.3, 2.4\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":148453,"url":"https:\/\/alphastreet.com\/india\/titan-company-indias-most-trusted-jewelers\/","url_meta":{"origin":155757,"position":4},"title":"Titan Company &#8211; India&#8217;s most trusted Jewelers","author":"Chirag Gupta","date":"June 5, 2023","format":false,"excerpt":"\"The year gone has witnessed several firsts in the history of Titan. The Jewellery, Watches & Wearables and EyeCare achieved landmark milestones of \u20b930,000 crores, \u20b95,000 crores and \u20b91,000 crores of annual consumer retail sales respectively for the first time in their retail journeys.\u201c\u2013 CK Venkataraman, Managing Director Stock data\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/bull-g66d3948d8_640.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/bull-g66d3948d8_640.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/06\/bull-g66d3948d8_640.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":140009,"url":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155757,"position":5},"title":"Titan Company Ltd Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"February 3, 2023","format":false,"excerpt":"Key highlights from Titan Company Ltd (TITAN) Q3 FY23 Earnings Concall Q&A Highlights: [00:01:55] Avi Mehta of Macquarie asked about demand trends in January and update on jewelry business given the sharp increase in prices. 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