Rakesh Jhunjhunwala holding Titan has hit an all-time high with Q3 Biz update!
Today’s buzzing stock is Titan, they have released their Q3FY22 business update. The company witnessed strong demand across its consumer businesses and clocked 36% growth over the festive quarter last year.
With the positive news, the stock has hit an all-time high of Rs 2,687. The market has been anticipating it for the last few days, in the last 10 trading sessions, the stock rallied 16.5%.
Jewellery segment revenue grew 37% YoY compared to last year same quarter. Tanishq's network expansion of 14 stores (net) includes two new stores in Dubai at prime locations of Dubai mall and Al Barsha which makes total stores count to 428. Cheerfulness in jewellery demand is driven by festive purchases in October and November helped the division to achieve significant revenue uplift for the quarter.
Both walk-ins and customer conversions were significantly higher compared to last year. New buyer growth was higher than total buyer growth driven partly by Tanishq's regionalization strategy of winning in focus markets. While ticket sizes were stable, they were 15% higher than pre-pandemic levels. The contribution from Tier-1 towns continued to improve and was close to pre-pandemic levels. Tanishq, Mia, Zoya are notable Jewellery brands of Titan.
Watches and Wearables
Watches and wearables segment revenue grew 28% YoY compared to last year same quarter. The division saw strong growth momentum with multi-brand channels, both online and offline, growing handsomely in the quarter, mainly on the back of the Titan brand. Premiumization journey is helping to gain higher value. Sales from Trade and large format stores (LFS) in particular clocked higher growth followed by Retail. Tier 2 and Tier 3 towns did better than metros. 20 new stores were added in Q3FY22, which makes the total stores count to 809. Sonata, Titan, Fastrack are notable watch brands of Titan.
Eyewear segment revenue grew 27% YoY compared to last year same quarter. The division's strong growth was driven by Sunglasses and Frames with a good demand uptick also seen in international brands. The division accelerated its growth journey with significant network expansion during the quarter. 53 new stores were added in Q3FY22, which makes the total stores count to 809. Titan Eyeplus, Fastrack are notable eyewear brands of Titan.
Revenue breakup: Jewellery – 83%, Watches& Wearables – 13%, Eyewear – 3%.
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