Jhunjhunwala's biggest stock bet Titan Company in focus as Tata group firm shares Q3 update

Shares of Titan Company Ltd will be in focus on Monday morning after the Tata group firm recorded a 22 per cent year-on-year (YoY) growth in revenue for the December quarter, with its jewellery segment clocking a domestic growth of 21 per cent on account of double-digit buyer growth and a moderate improvement in average selling prices.

Titan Company is Rekha Jhunjhunwala's biggest stock bet. Jhunjhunwala held 47,695,970 shares or 5.37 per cent stake in the Tata group firm at the end of September quarter, which was worth roughly Rs 17,700 crore on Friday. The stock is up 22 per cent in the last six months and 49 per cent in the last one year.

Titan said the growth in gold (plain) and coins in the festive quarter exceeded the studded sales growth, led by higher consumer interest in gold despite elevated prices and volatility. Suitable investments in exchange programs and consumer offers were carried out during the festive period to maintain growth momentum. Wedding segment contribution improved marginally YoY.

"Tanishq expanded its international presence, adding two more stores in USA in Houston and Dallas and one store in Singapore. Mia opened its first store in Dubai taking the Jewellery international footprint to 14 stores. The healthy consumer demand at international locations and geographical expansion drove 102 per cent YoY growth in primary outgo to these entities,” Titan Company said in a filing to BSE.

Out of 34 net store additions in India, Tanishq added 18 stores while Mia added 16 stores. In the case of Watches & Wearables (W&W) division, the domestic business grew 23 per cent YoY, led by 18 per cent revenue growth in the Analog watches and 64 per cent growth in wearables.

"Growth in Analog sub-segment was driven by healthy double-digit growths in Titan, Sonata, Helios and International brands. 25 new stores were added in the quarter

consisting of 9 stores in Titan World, 11 in Helios and 5 in Fastrack respectively. EyeCare Division Revenue declined by 3 per cent YoY. Titan Eye+ opened two new stores in the GCC region, one each in Dubai and Sharjah with no incremental additions (net) during the quarter," Titan said.

"In Emerging Businesses, Taneira's Revenue grew 61 per cent YoY. The brand opened 11 new stores during the quarter comprising of a store each in the new cities of Rajkot, Surat, Bhagalpur, and Chandigarh. The Fragrances & Fashion Accessories Revenue declined by 9 per cent YoY. Within businesses, Revenue in Fragrances declined by 8 per cent YoY whereas Fashion Accessories saw a decline of 10 per cent YoY. Caratlane Revenue grew by 31 per cent YoY led by season's new collections, wedding gifting curations and first ever 'Mangalsutra' campaign," it said.

Titan said studded segment saw 39 per cent YoY growth and that the business added 16 new domestic stores in the quarter to increase its network presence to 262 stores.

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