Titan witnesses positive Q2, plans stores under new brand

Though Titan has not sold as many gold coins, watches

and pieces of jewellery as it did last year, its Q2 sales grew at a modest 9.5 per cent year-on-year to Rs 2,288 crores with 21.3 per cent growth in net profit to Rs 180 crores driven by higher margins. The company’s Q2 operating margins stand at 11 per cent, up 90 basis points (bps) annually and 140 bps sequentially.

While the company has seen all segments grow, low consumer sentiment did affect results. The first half of FY-13 has been particularly challenging, with both jewellery and watch coming under pressure. While Q1 saw jewellery volumes fall due to the strike, Q2 has seen slower demand as the festive season has been delayed. For instance, the watch segment has grown 13 per cent, but operating margins have collapsed to 11.6 per cent.

The company with a presence in 32 countries has also undertaken rebranding exercise to change its earlier retail format of ‘World of Titan’ to a new-look Titan company store to attract customers with contemporary world-class shopping experience. The new retail identity includes creation of six contemporary zones for the customers such as fashion youth and sports zone, contemporary formal zone, dress zone for women, economy zone and premium zone. Titan is also planning to open 50 more new stores in as many towns.

The company has a total of eight flagships with 1,700–2,500 sq. ft. area in all metros, including the 1,800 sq. ft. 22-year-old store in Pune, which was relaunched recently. The stores sell watch brands such as Titan, Nebula, Xylys, Fastrack, Sonata and Zoop besides the new range of accessories from Titan. The company also unveiled Edge 2012, a collection of new watches that it claimed is among the thinnest and lightest in the world.