Titan gains on robust sales growth
The shares of Titan Company gained 2.13 per cent to trade at Rs. 1,129.70 after the company showcased strong revenue growth for the third consecutive financial year in Q4FY19.
The company demonstrated healthy growth across all divisions. It launched several new products and collections across brands and categories, thereby achieving numerous revenue milestones. It continued investments in digital initiatives. During FY19, the company set up a Design Excellence Centre and established a Corporate Business Group to focus on institutional sales. As a consequence, Titan delivered overall sales growth of nearly 21 per cent in FY19.
The company intends to speed up its network rollout which will assist in its endeavour to dominate markets. It is focused on expanding capabilities, taking advantage of synergies amongst its businesses by integrating key functions across divisions. Overall, it enjoys a very satisfactory business momentum.
The management has targeted growth of around 20 per cent in FY20, irrespective of the subdued outlook for the economy.
The jewellery division grew a little over 22 per cent in FY19. Furthermore, the company added a record number of new stores in FY19 which include 40 Tanishq stores. It also closed down 5 stores.
CaratLane continued to aggressively open its retail stores during the year, thereby registering a growth of around 42 per cent in FY 19.
The watches division clocked revenue growth of around 16 per cent. The year witnessed the launch of attractive new products across brands like Titan, Fastrack and Sonata. The most prominent growth driver in this segment is the e-commerce channel.
Similarly, the eyewear division too continued to progress as it concluded the financial year with impressive revenue growth of approximately 23 per cent. The division showcased noteworthy improvement in Net Promoter Scores for the stores, which ultimately propelled same-store growth.
The New Businesses category also recorded good performance. Skinn remained the best seller in its category in departmental chain stores, which resulted in market share gain. Building upon its demand, it has been adding new Point of Sales (POS) at a swift pace, crossing the 3,000 POS milestone. Skinn crossed the 1 million unit sale landmark as its sales surpassed Rs. 100 crore (at consumer price) during the year. Moreover, the 'special occasion ethnic wear' brand 'Taneira' is all set for expansion in FY2020.
On Friday, the shares of Titan Company opened at Rs. 1,124.95 and hit a high and low of Rs. 1130.75 and Rs. 1102.25, respectively. At 3:23 pm, the stock was trading at Rs. 1,106.05, down 0.08 per cent.