TITAN Q4FY25 BUSINESS UPDATE, ITS STANDALONE REVENUES GREW BY 25%YOY

News: According to Titan Q4FY25 business update, its standalone revenues grew by 25%yoy better than our expectation of 17% growth for the quarter. Jewellery witnessed a growth of 24% largely driven increase in the gold prices while buyers growth stood in single digit during the quarter. Plain gold jewellery registered 27% growth with higher price band products gaining good traction resulting in double digit growth in ticket prize. Lower price band products saw sluggish demand due to elevated gold prices. Studded jewellery segment grew in low double digit. Overall like-for-like sales growth (secondary sales) grew by 15% in Q4. Caratlane registered 22% growth. Buyers’ growth in Caratlane was in mid-single digit how traction to high price studded products led to double digit sales growth (LFL growth stood at 11%). Watches segment registered 20% growth with 18% growth in analog watches. All watches retail chains (including Titan World and Fastrack) registered double digit with Helios posting strong growth on back of high traction to premium watches. Eyecare business 18% growth driven by mix of buyer growth and product growth. Emerging business registered subdued growth of 3% due to lower growth in Tanera while rest of the segments are growing in double digits. Overall 55 stores were added in Q4 (including 16 for jewellery business), taking Titan’s store count to 2,989.

View: Titan Q4FY25 revenue growth is much better than expectation due to higher gold prices resulting in 24% growth in the jewellery business. Key positives were 1) Jewellery business ticket prize grew in double digit due to good traction to high price products 2) Watches and Eyecare business registered yet another quarter of double-digit growth and 3) Caratlane registering 20%+ growth. Key disappointers are 1) mid-single digit buyers growth core jewellery business and Caratlane 2) Studded growth was in low double digit might impact the studded mix 3) Emerging business grew by just 3%. Though revenue growth is strong, we believe higher gold prices and lower studded mix might affect the margins of Jewellery business impacting the overall margins during the quarter. Management commentary on jewellery demand in the inflated gold price environment and margin guidance would be keenly monitored.

Impact: Neutral