Wedding season to drive revenue growth for Titan

Titan reported a 50% year-on-year growth in its standalone Q4 net profit to Rs 734 cr. For the full fiscal year of FY23, Titan’s net profit rose nearly 53% to Rs 3,333 cr due to the low-base effect of FY22

Bengaluru: Upcoming wedding season puts Titan on a sweet spot to grow its revenue at a higher pace though price rise in gold acting as a dampener.

Brokerage firms are upbeat about the growth opportunities of Titan post its fourth quarter results.

“Titan is focusing on volume-led growth in jewellery given rising competition while superior mix and scale will help sustain margins. We expect Titan to capitalise on long-term growth opportunity led by jewellery segment gains due to network expansion, regional thrust and higher growth in sub brands like Mia, Zoya and Caratlane,” Brokerage firm, Prabhudas Lilladher wrote in a report.

Titan reported a 50 per cent year-on-year growth in its standalone Q4 net profit to Rs 734 crore. For the full fiscal year of FY23, Titan’s net profit rose nearly 53 per cent to Rs 3,333 crore due to the low-base effect of FY22. On the back of robust wedding season demand, Titan’s revenue from operations grew 33 per cent YoY to Rs 9,704 crore, while for the full FY23, the revenue grew 40.7 per cent to Rs 38,270 crore.

“To be fair, gold-price volatility does have its impact on buying behaviour but consumer-spending continues to be reasonably strong when there are occasions to do so, and a promising wedding calendar for May-June is likely a good indicator for the months ahead,” a report by JM Financial said.

In the watches segment, smart watch volumes crossed 1 million in FY23 with premium brands continued their strong performance with brand Titan and Helios, clocking double-digit growth.

“We believe eyewear and CaratLane have reached critical mass in FY23 and will be a key growth driver in coming years. Titan is gradually emerging as a lifestyle play which will help sustain premium valuations,” Brokerage firm, Prabhudas Lilladher added.