Q1 FY22 (APR-JUN 2021) Concall Summary

TITAN COMPANY LIMITED

Concall Date: 4 August 2021

Revenue: ₹3,473.0 cr (▲75.5%) Net Profit: ₹18.0 cr (▲106.1%)

FINANCIAL HIGHLIGHTS
PARTICULARS Q1 FY22 Q1 FY21 Change
(₹ cr) (₹ cr) % YoY
Revenue from Operations 3,473 1,979 75.5%
Net Profit 18 (297) 106.1%

• During the quarter ended 30th June, 2021, the company sold gold-ingots aggregating ₹424 crore to
various customers dealing in bullion, which is disclosed as other operating revenues.

SEGMENT HIGHLIGHTS
JEWELLERY
• The jewellery segment grew by 67.2% YoY to ₹3,050 crore, during the quarter.
• Total store operational days were at 73%, 10% and 58% for April, May and June, 2021, respectively
and 47% for the quarter.
• Studded ratio in Q1 FY22 stood at ~22% v/s ~18% in Q1 FY21 and gold coins contribution fell to ~7%
v/s ~14% in Q1 FY21. Additionally, gold exchange contribution was lower during the quarter compared
to Q1 FY20.
• The division is gaining good traction in new customers and its mix in total buyers has reached the pre-
pandemic levels. GHS (Golden Harvest Scheme) fresh enrolments were adversely impacted due to the
lockdowns, it however showed a YoY growth and refund requests have been quite low.

WATCHES & WEARABLES

• The division recorded a growth of ~286% YoY, due to low base effect and faster recovery post
lockdown witnessed this year.
• Total store operational days were at 70%, 24% and 51% for April, May and June, 2021, respectively.
• Recovery in higher ticket products was much better compared to the recovery in lower priced
products. Additionally, the recovery in smaller towns was better than metro cities.

EYE WEAR
• Eye Wear grew by ~123% YoY, during the quarter.
 Concall Summary
TITAN COMPANY LIMITED

• The division accelerated its path on e-commerce and launched Titan Eyeplus' App. It also launched
Neo Progressive lens and computer glasses, exclusively for e-commerce channel.

OTHER
• The segment being highly discretionary, all categories got impacted due to lockdowns.
• Fragrances recovery was relatively much better. Additionally, brand Skinn launched Tales, a new
collection celebrating happiness.
• Taneira stores were operational for about 30% of the total store days during the quarter. It started
the quarter with campaigns around regional festivals, which shifted towards digital marketing and
marketplace activities later.

SUBSIDIARIES
• In Caratlane, international sales grew by ~9x YoY. Studded ratio (including solitaires) stayed above
80% in Q1 FY22.
• Titan Engineering & Automation Limited (TEAL) recorded a de-growth of ~11%.

UPDATES
• The government has started the phased implementation of mandatory hallmarking of gold jewellery
with effect from June, 2021, which is an important step for the development of the industry and
safeguarding consumer’s interest. All of Titan’s stores have hallmarking license and 100% of Tanishq,
Mia, Zoya jewellery is hallmarked.
• Till 30th June, 2021, the company adopted cash-flow hedge accounting for the future contracts
wherein the expected cash-flow arising out of sale of gold in future was hedged. Based on its
evaluation, with effect from 1st July, 2021, it has decided to adopt a fair value hedge accounting
methodology as permitted under the Indian Accounting Standards (Ind-AS) to hedge its gold inventory
for fluctuations in the price of gold instead of cash-flow arising out of sale of gold in future.
• Titan Commodity Trading Limited started operations during the quarter for the hedging of the gold.
• TCL North America Inc. was incorporated as a wholly owned subsidiary of Titan Company, with the
objective of carrying on the business of jewellery retailing.
• TEAL USA Inc. was incorporated as a wholly owned subsidiary of TEAL with the objective of business
development for aerospace & automation solutions.

SEBI Registration no: IHN3000007493

Disclaimer:

This document has been prepared to provide a brief summary of the conference call conducted by the companies and
is intended to be used for learning enhancements. Nothing contained herein should be construed as a
recommendation on any stock or sector.