Titan Industries Sparkles In Q3FY13

Titan Industries, which operates through popular brands like Titan, Tanishq and Fastrack, announced its Q3FY13 results on January 30, 2013. The result, aided by a good festive season and increased footfalls, reflected well on all the brands of Titan Industries.

The company’s revenues grew by a robust 23.68% on a yearly basis to touch Rs 3017.8 crore. This strong growth was accompanied by margins improvement, making the result all the more impressive. The EBITDA margin grew by 15 basis points to 9.37% and the net profit margin increased by 3 basis points to 6.75%.

Titan Industries operates in three segments:

1. Watches: Titan, Sonata, Fastrack, etc
2. Jewellery: Tanishq
3. Others: Precision engineering, a B2B business, eyewear and accessories

On a yearly basis, the watches segment grew by 10.5%, with revenues going up to Rs 423.53 crore. The jewellery business turned out to be the real growth driver, with revenues increasing by 26.7% to Rs 2515.24 crore. Precision engineering, eyewear and accessories grew by a moderate 4.3% to Rs 98.26 crore.

Titan Industries operates through a total of 918 stores in India, as of December 2012, with a total retail area of over 12 lakh sq ft. The expansive presence combined with new product launches and constant demand stimulation through investments in mass communication has led to a strong performance by the company. Increasing brand recognition and geographical presence have also been indicative of the same momentum in its future growth. We remain bullish on the prospects of Titan Industries in the long term.