18.8% over last year. The income figures are not comparable as the income last year was post a December 2018 grew by 25.8%, to Rs.1532 crores. During the quarter there was an additional provision of Rs. 70 crores made for investments as part of Treasury operations in inter corporate...

Overall revenues grew 35% YoY to | 5871.5 crore (I-direct estimate: | 5239.4 crore). Supported by healthy festive season and successful exchange programme, the jewellery division reported robust revenue growth of 37% YoY to | 4997.0 crore (highest ever quarterly revenues). The watches segment sustained its revenue trajectory with growth of 18% YoY to | 646.6 crore. Revenues from eyewear division grew 43% YoY to | 129.5 crore Adjusting for IL&FS; provision (| 70 crore), EBITDA margins for the...

We reiterate a NEUTRAL rating with DCF based TP of Rs 900/sh (implied P/E of 38x Dec-20E EPS). Titan delivered a stellar quarter considering most big-box jewellers grew at 13-15% in 3Q; albeit one-offs impacted profitability. One-offs include a Rs. 700 mn provision towards IL&FS; exposure (Total exposure of Rs. 1.45bn, Rs 290 mn provided for in 2QFY19). Titans revenue grew by 34.6% (vs est. 30%). Adj. EBIT/APAT growth at 61/66% resp. to Rs 6.2/4.6 bn (a 13%/19% miss). Jewellery biz grew by ~37% (est. 32%) to Rs 49.9bn as all variables moved with clockwork precision (volume/price/mix grew ~20/8/9% YoY). Beat on revenue was on account of large institutional order for gold coins worth Rs 2bn for 3Q. Expansion in margins were even more pronounced +290bps to 12.9 % (194bps beat) due to 1. higher GM led by inventory valuation loss reversal from 2Q (Rs 180mn), 2. lower discount and 3. lower ad-spends.

Robust jewelry growth of 37% was aided by a strong festive season and the activation of the gold exchange scheme. Higher volatility in gold prices may pose a risk to consumption demand in the near term, in our view. However, Titan's strong position vs. peers and execution with a focus on multiple growth drivers offer good visibility. Profitability across the divisions was mixed with margins in watches being impacted by high ad spends. Management continues to maintain a 15% EBIT margin target for the division. Jewelry margin expansion was impressive, but was partly supported by inventory gain and lower ad spends. The focus remains on growth, and share gains can...

We maintain positive stance on Titan post 3Q results given 1) the guidance of 22% jewellery sales growth and opening of 40 Tanishq stores in FY19 2) expected gains from backward integration and proactive strategy in Eyewear and 3) success of new collections in watches. QTD sales in 4Q grew by ~18%...

ICICI Securities Ltd | Retail Equity Research In its quarterly preview of Q3FY19, the management of Titan highlighted that healthy revenue growth was witnessed across all its divisions, signalling robust customer demand in the festive season of DiwaliDussehra. The jewellery division continued to gain market share driven by rapid store expansion and strong same store sales growth (SSSG). The management now expects the jewellery division to exit FY19 with revenue growth of 22% (vs. earlier guidance of ~20%). The watches division continued on its healthy trajectory driven by launch of new...

4 January 2019 Jewellery segment capitalized well on seasonal strength to report robust growth in 3QFY19. Management cited that the segment expanded its market share on account of robust same-store sales growth. Prescription Eyewear business also sustained growth momentum due to its strategy of offering more assortments at affordable price points and aggressive marketing spends. Management stated that the category continued delivering a strong performance on account of rapid store expansion, increasing affluence of customers in middle India, and strong consumer demand on account of the festive season of Diwali-Dussehra. The company also indicated that same-store sales growth remains very strong and that market share gains continue. In 3QFY19, TTAN added 11 new stores (65k sq. (collection of Heritage and Antique gold jewellery) during the quarter, which has received good customer response. Watches division reportedly continued its healthy growth momentum in 3QFY19, led by the focus on new designs and marketing spends.

In an encouraging sign, wedding season demand is scaling up well for TTAN. This should uplift management confidence as it had guided for healthy growth (25-30%) for 3QFY19 but refrained from commenting on the fourth quarter performance. In our view, if consumers continue flocking to its stores in the wedding season, Jewelry sales growth of 25% for the full year is achievable (note that TTAN had guided for Jewelry sales growth of 25% at the start of the year but lowered it to ~20% later).

Titan Company Ltd.'s profit misses analyst estimates in the July-September period. The company has announced an impressive growth in income of 26% for the second quarter. The income from operations in the second quarter, July to September 2018, was RS.4353 crores, against last year's income of Rs.3439 crores during the same period. The income for April to September 2018, the first half of this financial year, stands at Rs.8622 crores, registering a growth of 16% over last year. The Standalone PBT for Q2 is Rs.446 crores, against Rs.425 crores last year, recording a growth of 5%. The growth in the profit before tax for the quarter was muted due to provision made to...

Net revenues grew by 26.4% YoY to ` 44.0bn came ahead of our estimate. Jewellery business reported a robust 28.5% sales growth mainly led by grammage growth of 24%. The segment benefited from new launches in plain gold jewellery, however, studded jewellery contribution declined from 37% to 35% during the quarter. Consequently, GM and EBITDA margins contracted. We believe the growth in jewellery category would continue, despite unfavorable base benefiting from new store additions and new customer acquisition. Further, Titan, being one of the largest...

ICICI Securities Ltd | Retail Equity Research Titan reported revenue growth of 27.0% YoY to | 4567.2 crore (Idirect estimate: | 4160.2 crore) driven by robust growth across all divisions. The jewellery division reported robust revenue growth of 29% YoY to | 3645.1 crore despite muted growth seen by the industry (according to the management, industry grew 5-15%). The watches segment sustained its revenue trajectory with growth of...

We maintain our estimates and DCF-based TP of Rs 820/sh (implying a P/E of 38x Sept-20E EPS). Reiterate NEUTRAL. Coming off a rather painful 1Q, channel checks suggest that most big-box jewellers grew at 10-15% in 2Q. In this back-drop, Titans 2Q performance seems rather commendable as the market share gain narrative is on track, albeit one-offs marred profitability.

momentum with 29% QTD growth in jewellery in 3Q 2) reversal of Rs180mn inventory loss in 3Q 3) expected gains from backward integration and proactive strategy in Eyewear and 4) success of new collections in watches....

to INR45.7b (a) Jewelry sales grew 29% YoY to INR36.5b, 9 November 2018 but the segmental margin shrank 200bp YoY to 10.4%. (b) Watches sales rose 17.5% YoY to INR6.8b, with the EBIT margin expanding 210bp YoY to 16.4%. (1) TTAN witnessed 29% growth in the 40-day Dussehra- Diwali festive period; likely to maintain momentum for the remainder of valuation loss of INR180m, which will reverse in the subsequent quarter and (c) INR150m compensation cost to franchisee toward taking over two large profitable stores in Hyderabad. Lower-than-expected 2QFY19 margins have led us to cut our FY19/20 EPS estimate by 3.

In its quarterly preview, the management indicated that the company continued to gain market share in its jewellery division for Q2FY19 driven by new collection launches and extension of diamond studded activation. Market share gains were also visible in Q1FY19 wherein the industry had declined 10-25% but its jewellery division reported revenue growth of 6% YoY. Titan has been a key beneficiary of migration from unorganised to organised players driven by recent regulatory changes, which is evident from sustained market share gains....

4 October 2018 Management stated that the industry operating environment for jewelry has been muted due to factors like lesser number of wedding dates, an increase in gold prices, tightening of credit to industry and subdued consumer demand. Nevertheless, TTAN reported good Jewelry sales, led by (a) market share gains, (b) successful new launches and (c) extended studded diamond activation. In 2QFY19, TTAN added six new stores (35k sq. of retail space added in 1HFY19), taking YTD store addition to 16. TTAN closed two stores in 1HFY19. (collection of studded jewellery) in 2QFY19, which enjoyed very good customer response. Contemporary silver collection was also launched under the Mia brand in the quarter. Watches division extended its growth momentum in 2QFY19, led by its continued focus on new designs and increased marketing spend. stores (closed 1) in 1HFY19, adding 1.8k sq.

27 September 2018 meet in May 2017, TTAN guided for 20% revenue growth in its Jewelry (Tanishq) business over FY17-22. TTAN has been the biggest beneficiary of the shift from unorganized to organized trade and the only material beneficiary of GST so far. Moreover, the series of measures taken by the government over the past three years to curb black money in the system is haunting unorganized players is a big way, creating a level-playing field and providing immense growth opportunities for organized players (among which, TTAN is the largest and the most trusted brand). The benefits from the shift away from unorganized trade will continue coming TTANs way in the coming years, in our view. jewelry in recent years (market size of INR1.5t v/s TTANs earlier core adornment market size of INR0.5t opening up an INR2t opportunity for the company); the target is to increase wedding jewelrys share to 50% of its jewelry sales from 35% in FY18.

We expect the Titan stock to remain volatile and mostly weak in the backdrop of the recent announcement by the government that it is looking at ways to curb import of non-essential' items. We do not expect RBI or the government to create disruptions of the kinds they did in 2013 (see Exhibits 1-3 for chronology of events, their impact on Titan's stock price), which in hindsight did no material damage to Titan's business-model but did severely impact stock performance in the interim. Ceteris parabus, any sharp fall in stock price on account of nervousness around government or RBI's current account deficit control measures should be used as a buying opportunity - Titan's intrinsic value would be impacted if and only if RBI's...

Titan was incorporated in 1984 as a joint venture between the TATA Group and...

Titan Company Ltd is in the Consumer Durables sector, having a market capitalization of Rs. 81,609.74 crores.