WFH – a dreaded term for many industries in the fashion and accessories business, while a welcome term for the FMCG and household products category seemed to have played a positive and negative role for Titan Industries who’s NET Sales grew 3% during FY 20-21 over the previous Financial Year. The company’s consolidated revenue stood at Rs. 21,644 Cr for FY20-21 as against Rs. 21,502 Cr in the previous year. PBT declined 41% to Rs. 1,233 Cr and Net Profit decreased by 42% to Rs. 877 Crores.
Surprising, Tanishq, the group’s flagship jewellery brand grew 12% to Rs. 18,631 Cr during FY 20-21 (Rs. 16,738 in FY 19-20). Perhaps, the urban middle class, who contribute the most to the iconic brand’s core customer profile purchased more jewellery due to increased time on hand, thanks to fewer visits to workplace and a flexible working pattern during the week. From Aug/ ‘20 onwards, when most of the country had a full Unlock for the next 6 months, sales across various categories bounced back though the critical and crucial Deepavali Sales were muted – from jewellery to consumer durables, CDIT to apparel. But Tanishq seems to have managed to overcome this wave by focussing on a few key metrics such as social distancing, appropriate Covid-19 behaviour by the staff at stores and a strong focus on hygiene. Numbers speak for themselves at the end.
Titan Eye+, the company’s eyewear division saved money from operations and had a positive EBITDA of Rs. 23 Cr during FY 20-21 over a Loss of Rs. 14 Cr in the previous fiscal. While the Sales generated from this vertical dipped drastically from Rs. 544 Cr in FY 19-20 to Rs. 375 Cr in FY 20-21. Among other reasons for the turnaround in profitability could be non-operational stores at Malls where the rentals were waived for much period, alongside the lockdown which came as a huge relief to many brands including Titan. The flagship Watched division’s sales nosedived the most – to Rs. 1,580 Cr in FY 20-21 as against Rs. 2,616 in the previous FY, a drop of 40%. Understandably, the watches segment was the most muted among a number of fashion accessories categories as offices in metro cities remained closed most of the year with employees and employers opting for WFH. Secondly, with marriages – being an occassion for the bride, the groom and the extended family to buy a wrist watch as a custom, coming to a standstill all through the pandemic year, with no more than 50-300 people being allowed to attend, could have been a very important reason for the huge dip in sales. The division marked a loss of Rs. 65 Cr in FY 20-21 compared to Rs. 365 EBITDA in the previous year. While the shopping trend for watches doesn’t seem to see an immediate uptick, retailers and brands are hoping for a better festive season in the critical Q2 FY21-22 amidst the scare of a 3rd wave of the pandemic during Sep. ‘21.
Tamil Nadu Industrial Development Corporation, a department of the Tamil Nadu State Government is the largest shareholder of TITAN with a 27.88% shareholding while the TATA Group holds 25.02%. FFIs, FIIs, Corporate Bodies, Institutional Investors, Mutual Funds, Banks and others hold the balance 47% in the company which was formed in 1984 as a JV between the TN Government and the TATA Group. The company employs 7,235 employees at its factories and retail stores spread across the country.
The company operates 1,909 stores including Tanishq, Zoya, Caratlane, Titan Eye+, Titan Wathes and Taneria (fashion apparel) spread over 25 lakh sq ft across India and opened it’s flagship Tanishq outlet at Meena Bazaar in Dubai in Oct. 2020. Titan Watches are available at 7,000 multi-brand stores in India and there are 662 watch repair centres, thereby being accessible the most to customers who buy time wear. The complete annual report can be accessed here.
