{"id":158307,"date":"2024-02-02T06:09:25","date_gmt":"2024-02-02T11:09:25","guid":{"rendered":"https:\/\/44.250.171.167\/?p=158307"},"modified":"2024-02-09T13:15:21","modified_gmt":"2024-02-09T18:15:21","slug":"titan-company-ltd-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"Titan Company Ltd Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Titan Company Ltd (TITAN) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Jewelry Business<\/strong>\n<ul>\n<li>Tanishq sales growth slowed in Q3 due to timing of Shradh festival between Q2 and Q3 this year vs last year.<\/li>\n<li>Gold price increase in December 2022 led to hesitancy in customer purchases.<\/li>\n<li>Margin declined 80 bps in Q3 due to lower studded jewelry sales mix and increased marketing investments.<\/li>\n<li>Offered promotions like exchange programs amid high competition to maintain market share.<\/li>\n<li>Opened 36 new Tanishq stores in India this fiscal by seizing opportunities; will continue expanding into new towns\/markets.<\/li>\n<li>Opened fewer CaratLane stores this year after opening 90 last fiscal; more stores planned based on opportunities.<\/li>\n<li>Demand in sub-INR100,000 segment stable at portfolio level across Tanishq, CaratLane, Mia.<\/li>\n<li>Softness in same-store growth for Tanishq in this segment due to economic challenges for consumers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Watch\/Eyewear Segment<\/strong>\n<ul>\n<li>Higher marketing expenses for festive season impacted margins in Q3 in watches.<\/li>\n<li>Grew wearables sales to over INR500 cr last year, seeing 70-80% growth this year.<\/li>\n<li>Gained market share from 5-6% to 8-9% on styling, quality and marketing campaigns.<\/li>\n<li>Wearables mix resulting in lower 11-12% margins vs 13% earlier guidance for next few quarters.<\/li>\n<li>In eyewear, growth muted due to industry-wide slowdown Sep-Nov; saw better growth in Dec.<\/li>\n<li>Continuing calibrated store expansion by opening 60+ stores while rationalizing underperforming ones.<\/li>\n<li>Focusing on making existing 300+ stores profitable after rapid expansion.<\/li>\n<\/ul>\n<\/li>\n<li><strong>CaratLane and Tanishq<\/strong>\n<ul>\n<li>CaratLane and Tanishq serve different segments so not directly comparable.<\/li>\n<li>Tanishq benefited from gold sales while CaratLane is mainly sub-50k studded.<\/li>\n<li>CaratLane added many new stores last year, so some normalization expected.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Watch Segment Outlook<\/strong>\n<ul>\n<li>Earlier 18% margin target was ambitious dream based on doubling sales.<\/li>\n<li>Revised more realistic target closer to 15-16% margin in next 2 years.<\/li>\n<li>Reaching higher sales and margin targets requires significant investments.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Store Expansion Plans<\/strong>\n<ul>\n<li>Currently present in 265 towns; see potential to reach 300 towns in next few years.<\/li>\n<li>Identifying new catchment areas in existing towns and entering newer towns.<\/li>\n<li>Don&#8217;t have specific store number target for 3-5 years; will share longer term plans in future.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Indian Ethnic Wear Growth<\/strong>\n<ul>\n<li>Overall ethnic wear growth 61% in Q3, 70% YTD with store expansion to 75 by year-end.<\/li>\n<li>However, like-for-like growth slower, in line with muted industry trend of negative like-for-like.<\/li>\n<li>Apparel industry saw slow like-for-like growth over last 4-5 quarters.<\/li>\n<\/ul>\n<\/li>\n<li><strong>International Customer Trends<\/strong>\n<ul>\n<li>Average 2 lakh customers per international store, higher in US than GCC.<\/li>\n<li>Returning customer base in international markets leading to some ticket size increases.<\/li>\n<li>Bringing Indian franchise partners to international markets like Dubai and Singapore.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Demand Outlook<\/strong>\n<ul>\n<li>Titan serves higher income segments less impacted by slowdown.<\/li>\n<li>Seeing continued strong growth in jewelry, watches, perfumes, international.<\/li>\n<li>Quarterly blips don&#8217;t change positive medium-term outlook till FY25-26.<\/li>\n<\/ul>\n<\/li>\n<li><strong>CaratLane and Mia Positioning<\/strong>\n<ul>\n<li>Both brands are growing profitably in evolving value segment.<\/li>\n<li>Serve different target groups with distinct product mix and branding.<\/li>\n<li>Overlap between brands likely small; getting new customers for portfolio.<\/li>\n<li>No plans to consolidate the brands given profitable growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Franchise Store Expansion<\/strong>\n<ul>\n<li>Not dialing up L3 stores; prefer more L2 stores.<\/li>\n<li>L3 suited for certain remote markets; L2 more profitable.<\/li>\n<li>Expect franchise store mix to remain stable going forward.<\/li>\n<li>Balance sheet strong, incremental expansion not constrained.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Jewelry Growth Outlook<\/strong>\n<ul>\n<li>Confident of delivering 20% CAGR growth target for jewelry segment.<\/li>\n<li>Growth so far in line with target despite exceeding it last year.<\/li>\n<li>Don&#8217;t see headwinds to achieving FY27 guidance shared earlier.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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 in Q3 due to lower [&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-158307","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":155757,"url":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":158307,"position":0},"title":"Titan Company Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 3, 2023","format":false,"excerpt":"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\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":158307,"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":158307,"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":140009,"url":"https:\/\/alphastreet.com\/india\/titan-company-ltd-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":158307,"position":3},"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. Ajoy Chawla CEO Jewelry said that TITAN is seeing good demand in Jan., despite price\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":158307,"position":4},"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":158307,"position":5},"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":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/158307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=158307"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/158307\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=158307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=158307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=158307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}