ITV

Tag: Bhaskar Bhat

  • Q2-17: Ad exp up, gold hedging helps Titan’s numbers

    Q2-17: Ad exp up, gold hedging helps Titan’s numbers

    BENGALURU: The Titan Company Limited (Titan) which believes in delivering value through brands had higher advertising spends (ad spends) in the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the corresponding year ago (y-o-y) quarter Q2-16. The company’s ad expense in the current quarter was up 9.4 percent y-o-y at Rs 98.08 crore as compared to the Rs 89.64 crore in Q2-16.

    The company’s bottomline (Profit after tax- PAT) increased 23.5 percent y-o-y to Rs 180.76 crore in Q2-17 as compared to Rs 146.35 crore. Total comprehensive income (TCI) in the current quarter was increasedfurther by a gain of Rs 100.26 crore due hedging instruments for gold price hedging, the unutilized portion of which Titan recognised as an expense head in its profit and loss statement. TCI in Q2-17 was 89.7 percent higher y-o-y at Rs 269.37 crore as compared to Rs 141.97 crore in Q2-16.

    Segment Performance

    Titan has 4 revenue segments – watches having five majorwatch brands –Titan, Xylus, Nebula, Sonata, Fastrack, and three point of sales brands – World of Titan, Helios and Fastrack; Jewellery with Tanishq, Zoya, Gold Plus from Tata and sub brand Mia; Eyewear under the Titan EYE+, Fastrack, Glares and Cabana brandsand ‘Other’ such as precision engineering among others.

    Titan’s Jewellery business is its major revenue generating stream that contributes more than70 percent to the company’s revenue.  In the current quarter, jewellery business revenue was almost flat (grew 0.2 percent, grew by Rs 4.79 crore) y-o-y to Rs 1,987.51 crore (74.3 percent of net sales) from Rs 1982.72 crore (73.9 percent of net sales). The company says that performance of the diamond studded jewellery segment was much better than plain gold segment.

    The company’s Watches division is the next major division in terms of revenue contribution. Revenues from watches declined5.2 percent (reduced by Rs 28.75 crore) y-o-y to Rs 52.369 crore (19.6 percent net sales) from Rs 552.44 crore (20.6 percent net sales).  Titan explains the reason for the decline in a release that says the Watches division continued to exhibit a decent performance in the domestic market but the overall business declined due to lack of growth in some of its international markets as well as its service business which went through re-structuring.

    Titan’s Eyewear business which contributes about 3 to 4 percent to the company’s revenue, reported 6.6 percent (increased by Rs5.86 crore) y-o-y growth in revenue to Rs95.19 crore (3.6 percent of TIO) from Rs 89.33 crore (3.3 percent of TIO).

    Titan’s TIO in the current quarter was also flat (declined 0.2percent, reduced by Rs5.57 crore) y-o-y to Rs 2,675.77 crore from Rs 2,681.34 crore.

    Advertisement spend trends

    Please refer to fig A below for Titan’s Ad expenses over a nineteen quarter period starting Q4-12 (quarter ended March 31, 2012) until the current quarter. It may be noted that Titan has started reporting its numbers as per the Indian Accounting System (IND AS) since Q1-17 and hence the numbers in the charts may not be accurate – this report and the charts are meant as an approximate representation of the company’s numbers.

    During the nineteen quarter period under consideration in this report, Titan’s Ad spends were the highest in Q1-16, both in absolute rupees and in terms of percentage of TIO. Lowest Ad spends during the same period in absolute rupees and in terms of percentage of TIO waslowest in Q4-13 at Rs 66.63 crore and 2.5 percent of TIO respectively.

    Also, during the nineteen quarter period under consideration in this report, Titan’s ad spends show a linear increasing trend in terms of absolute rupees as indicated by the broken blue trend line, while ad spends in terms of percentage of TIO show a slow linear decline as indicated by the broken maroon line in Fig A.

    public://TITAN-AD.jpg

    Company Speak

    Titan Managing Director Bhaskar Bhat said, “This was an extremely good quarter for the Company with respect to profits. All businesses of the company recorded profits in the quarter. The Jewellery business had an extremely good studded jewellery activation and the Watches business launched its second smart watch, Juxt Pro. All our retail channels grew. The festive season has commenced very well. For the Dussehra to Diwali festive period, Tanishq registered a growth of 39 percent over last year. In watches, for the same period, our World of Titan stores grew by 14 percent and Helios stores by 11 percent in retail sales.”

    Note:(1)Titan has started reporting its numbers as per the Indian Accounting System (IND AS) since Q1-17 and hence the numbers in the charts may not be accurate – this report and the charts are meant as an approximate representation of the company’s numbers.

    (2) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

  • Q2-17: Ad exp up, gold hedging helps Titan’s numbers

    Q2-17: Ad exp up, gold hedging helps Titan’s numbers

    BENGALURU: The Titan Company Limited (Titan) which believes in delivering value through brands had higher advertising spends (ad spends) in the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the corresponding year ago (y-o-y) quarter Q2-16. The company’s ad expense in the current quarter was up 9.4 percent y-o-y at Rs 98.08 crore as compared to the Rs 89.64 crore in Q2-16.

    The company’s bottomline (Profit after tax- PAT) increased 23.5 percent y-o-y to Rs 180.76 crore in Q2-17 as compared to Rs 146.35 crore. Total comprehensive income (TCI) in the current quarter was increasedfurther by a gain of Rs 100.26 crore due hedging instruments for gold price hedging, the unutilized portion of which Titan recognised as an expense head in its profit and loss statement. TCI in Q2-17 was 89.7 percent higher y-o-y at Rs 269.37 crore as compared to Rs 141.97 crore in Q2-16.

    Segment Performance

    Titan has 4 revenue segments – watches having five majorwatch brands –Titan, Xylus, Nebula, Sonata, Fastrack, and three point of sales brands – World of Titan, Helios and Fastrack; Jewellery with Tanishq, Zoya, Gold Plus from Tata and sub brand Mia; Eyewear under the Titan EYE+, Fastrack, Glares and Cabana brandsand ‘Other’ such as precision engineering among others.

    Titan’s Jewellery business is its major revenue generating stream that contributes more than70 percent to the company’s revenue.  In the current quarter, jewellery business revenue was almost flat (grew 0.2 percent, grew by Rs 4.79 crore) y-o-y to Rs 1,987.51 crore (74.3 percent of net sales) from Rs 1982.72 crore (73.9 percent of net sales). The company says that performance of the diamond studded jewellery segment was much better than plain gold segment.

    The company’s Watches division is the next major division in terms of revenue contribution. Revenues from watches declined5.2 percent (reduced by Rs 28.75 crore) y-o-y to Rs 52.369 crore (19.6 percent net sales) from Rs 552.44 crore (20.6 percent net sales).  Titan explains the reason for the decline in a release that says the Watches division continued to exhibit a decent performance in the domestic market but the overall business declined due to lack of growth in some of its international markets as well as its service business which went through re-structuring.

    Titan’s Eyewear business which contributes about 3 to 4 percent to the company’s revenue, reported 6.6 percent (increased by Rs5.86 crore) y-o-y growth in revenue to Rs95.19 crore (3.6 percent of TIO) from Rs 89.33 crore (3.3 percent of TIO).

    Titan’s TIO in the current quarter was also flat (declined 0.2percent, reduced by Rs5.57 crore) y-o-y to Rs 2,675.77 crore from Rs 2,681.34 crore.

    Advertisement spend trends

    Please refer to fig A below for Titan’s Ad expenses over a nineteen quarter period starting Q4-12 (quarter ended March 31, 2012) until the current quarter. It may be noted that Titan has started reporting its numbers as per the Indian Accounting System (IND AS) since Q1-17 and hence the numbers in the charts may not be accurate – this report and the charts are meant as an approximate representation of the company’s numbers.

    During the nineteen quarter period under consideration in this report, Titan’s Ad spends were the highest in Q1-16, both in absolute rupees and in terms of percentage of TIO. Lowest Ad spends during the same period in absolute rupees and in terms of percentage of TIO waslowest in Q4-13 at Rs 66.63 crore and 2.5 percent of TIO respectively.

    Also, during the nineteen quarter period under consideration in this report, Titan’s ad spends show a linear increasing trend in terms of absolute rupees as indicated by the broken blue trend line, while ad spends in terms of percentage of TIO show a slow linear decline as indicated by the broken maroon line in Fig A.

    public://TITAN-AD.jpg

    Company Speak

    Titan Managing Director Bhaskar Bhat said, “This was an extremely good quarter for the Company with respect to profits. All businesses of the company recorded profits in the quarter. The Jewellery business had an extremely good studded jewellery activation and the Watches business launched its second smart watch, Juxt Pro. All our retail channels grew. The festive season has commenced very well. For the Dussehra to Diwali festive period, Tanishq registered a growth of 39 percent over last year. In watches, for the same period, our World of Titan stores grew by 14 percent and Helios stores by 11 percent in retail sales.”

    Note:(1)Titan has started reporting its numbers as per the Indian Accounting System (IND AS) since Q1-17 and hence the numbers in the charts may not be accurate – this report and the charts are meant as an approximate representation of the company’s numbers.

    (2) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

  • Q2-2016: Ad exp down 30.5 percent; watches sales grow, jewellery pulls down Titan’s numbers

    Q2-2016: Ad exp down 30.5 percent; watches sales grow, jewellery pulls down Titan’s numbers

    BENGALURU: Last quarter (Q1-2016) Titan Company Limited (Titan) spent the highest amount towards advertisement (Ad spend) both in terms of absolute rupees and percentage of Total Income from Operations (TIO) at Rs 128.84 crore and 4.8 percent of TIO.  This quarter (quarter ended September 30, 2015, Q2-2016, current quarter), Titan reduced its Ad Exp by 15.4 percent YoY to Rs 89.52 crore (3.3 percent of TIO as compared to Rs 105.83 crore (2.9 percent of TIO) and reduced Ad exp QoQ by 30.5 percent from the figures mentioned above for Q1-2016.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    Segment Performance

    Titan has 4 revenue segments – watches having the brands –Titan, Xylus, Nebula, Sonata, Fastrack and Zoop; Jewellery with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; Eyewear under the Titan EYE+ brand and ‘Other’ such as precision engineering among others.

    Titan’s Jewellery business is its major revenue generating stream that contributes more than 70 percent to the company’s revenue.  In the current quarter, jewellery business revenue reduced 32.9 percent (declined by Rs 1,000 crore) YoY to Rs 1,929 crore (72.7 percent net sales) from Rs 2,929 crore (82.2 percent of net sales). The company’s Watches division is the next major division in terms of revenue contribution. Revenues from watches grew 4.4 percent (increased by Rs 23 crore) YoY to Rs 546 crore (20.6 percent net sales) from Rs 523 crore (14.7 percent net sales).  Titan explains the reason for the decline in a release that says that retail sentiment has been extremely poor in this quarter and that the watches division, backed by activations for both Titan and Fastrack brands grew in income by 4.4 percent. A new sub-brand ‘SF’ by Sonata in the adventure sports segment was launched during the current quarter.

    Titan’s Eyewear business which contributes just 2 to 3 percent to the company’s revenue, reported 14.3 percent (increased by Rs 11 crore) YoY growth in revenue to Rs 88 crore (3.3 percent of TIO) from Rs 77 crore (2.2 percent of TIO). On a YTD basis, (6 months of the current fiscal), Titan says that the decline in profits from this segment is due to higher Sales promotion and Advertising costs in the first quarter.

    As a consequence of the huge decline in revenue from Jewellery sales, Titan’s TIO in the current quarter fell 25.6 percent (reduced by Rs 919.59 crore) YoY to Rs 2,673.48 crore from Rs 3,593.07 crore. Net Sales fell 25.5 percent (reduced by Rs 910 crore) YoY to Rs 2655 crore from Rs 3565 crore. Qoq, the TIO decline was much lower at 1.3 percent from Rs 2708.59 crore. QoQ, net sales in the current quarter reduced by 1.2 percent (reduced by Rs 32 crore) as compared to Rs 2,687 crore.

    Advertisement spend trends

    Please refer to fig A below for Titan’s Ad expenses over a fifteen month period starting Q4-2012 (quarter ended March 31, 2012) until the current quarter.

    As mentioned above, during the fifteen quarter period under consideration in this report, Titan’s Ad spends were the highest in the previous quarter (Q1-2016), both in absolute rupees and in terms of percentage of TIO. Lowest Ad spends  during the same period in absolute rupees and in terms of percentage of TIO were in Q4-2103 at Rs 66.63 crore and 2.5 percent of TIO respectively.

    During the fifteen quarter period under consideration in this report, Titan’s ad spends show a linear increasing trend in terms of absolute rupees as indicated by the broken blue trend line, while ad spends in terms of percentage of TIO show a slow linear decline as indicated by the broken maroon line in Fig A.

    Please refer to Figure B below. As mentioned above, the company’s TIO in Q2-2016 fell 25.2 percent YoY and reduced 1.3 percent QoQ. During the fifteen quarter period under consideration in this report, TIO shows a linear increasing trend as indicated by the broken orange trend line in the figure below.

    PAT in Q2-2016 at Rs 145.39 crore (5.8 percent margin) reduced 39.4 percent YoY from Rs 239.98 crore (7.3 percent margin) and reduced 3.8 percent QoQ from Rs 151.06 crore (6 percent margin). PAT in absolute rupees and in terms of percentage of TIO (margin) show a linear increasing trend as indicated by the broken military green and broken grey trend lines in the figure below during the fifteen month period under consideration in this report.

    Company Speak

    Titan Managing Director Bhaskar Bhat said, “This was an extremely challenging quarter for the company and we witnessed an income decline of 25 percent. While our watches business witnessed a growth of low single digit at 4.4 percent the jewellery business had a difficult quarter with a decline over last year. The industry saw a tough period with gold imports declining significantly. The decline in jewellery sales was also on account of discontinuation of our Golden Harvest Scheme. The Eyewear business continues to register double digit growth. All our brands are working on new product and marketing campaigns for the festive season ahead.”

  • O&M bags maximum statuettes at IndIAA Awards

    O&M bags maximum statuettes at IndIAA Awards

    MUMBAI: Ogilvy & Mather bagged the maximum number of six awards at the IndIAA Awards, which are organised by theIndia Chapter of the International Advertising Association (IAA).

     

    O&M was awarded for its creative work on brands such as Titan, Kinley, SBI Life, Hero Indian Super League, BMW and Vodafone.

     

    On the other hand, amongst media agencies, Maxus won four awards for Dabur Vatika, Vodafone, Titan and Hero Motocorp.

     

    IndIAA Awards, which held on 13 October at ST Regis Hotel, saw 16 winners from various creative and media agencies. It also included various agency partners from digital, activation, PR and events.

     

    IndIAA awards chairman Pradeep Guha said, “The IndIAA Award format ensured that ‘ads for awards only’ didn’t come through and this itself was the differentiator.”

     

    IAA India chapter president Srinivasan Swamy added, “With the IndIAA Awards, IAA has added another interesting concept to its existing cache of clutter-breaking events. We attempted IndIAA Awards as an experiment; we wanted to create a different way of awarding creativity. With the response to our call for entries and the turnout today, we know that this concept has been very well accepted.”

     

    On the jury for the awards were Unilever COO and Hindustan Unilever non-executive chairman Harish Manwani, Titanmanaging director Bhaskar Bhat, Standard Chartered Bank group head of brand and chief marketing officer Sanjeeb Chaudhuri, State Bank of India managing director and group executive (national banking) B Sriram and Kelloggs India managing director Sangeeta Pendurkar.

     

    “Great brands are built around insights, not analytics,” said Manwani, while addressing the audience in the ceremony.

  • Q1-2016: Titan ad spends up 30% at Rs 128.84 crore

    Q1-2016: Titan ad spends up 30% at Rs 128.84 crore

    BENGALURU: Titan Company Limited (Titan) spent the highest amount in absolute rupees and in terms of per centage of Total Income from operations (TIO) towards advertisements in the quarter ended 30 June, 2015 (Q1-2016), during a 14 quarter period that has been considered in this report. The company‘s ad spend in the current quarter at Rs 128.84 crore (4.8 per cent of TIO) was 29.8 per cent more than the Rs 99.25 crore (3.4 per cent of TIO) in Q1-2015 and 60.4 per cent more than the Rs 80.30 crore (3.2 per cent of TIO) in the immediate trailing quarter.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    Businesses and Brands

    Titan has three revenue segments – watches comprising the brands –Titan, Xylus, Nebula, Sonata, Fastrack and Zoop; Jewellery with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

    Segment Performance

    Titan’s watches business in Q1-2016 recorded a growth of 9.1 per cent with income of watches business growing from Rs 444.19 crores to Rs 484.54 crores. The Jewellery income in Q1-2016 was Rs 2072.03 crores as against Rs 2325.27 crores, a decline of 10.9 per cent. The company says that jewellery business continues to face regulatory pressures that have an adverse impact on sales. Titan’s Eyewear business grew by 19.7 per cent from Rs 89.21 crores last year to Rs 106.77 crores in Q1-2016. The company’s other businesses including Precision Engineering grew by 36.3 per cent, to Rs 46.85 crores in the current quarter.

    The companys says that it has put together plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches in the coming quarters.

    Retail expansion continued with a net addition of 22 stores across all its businesses in Q1-2016, ending the period with a retail area of over 16.2 lakh square feet nationally. Titan’s retail chain is now 1223 stores strong, as on 30 June, 2015 and is expanding with growth plans in place for all its retail businesses – watches, jewellery and eyewear.

    Advertisement spend trends

    Please refer to Fig A below. As mentioned above, during the fourteen quarter period starting Q4-2014 until Q1-2016, Titan’s ad spends were the highest in the current quarter, both in absolute rupees and in terms of percentage of TIO. Lowest ad spends in absolute rupees and in terms of percentage of TIO was in Q4-2103 at Rs 66.63 crore and 2.5 per cent of TIO respectively during the same period.

    During the fourteen quarter period under consideration in this report, Titan’s ad spends show a linear increasing trend in terms of absolute rupees as indicated by the broken blue trend line, while ad spends in terms of percentage of TIO show a slow linear decline as indicated by the broken maroon line in Fig A.

    Please refer to Figure B below. The company’s TIO in Q1-2016 fell 6.3 per cent to Rs 2708.59 crore as compared to the Rs 2891.44 crore in Q1-2015 but was 8.5 per cent more than the Rs 2496.19 crore in Q4-2015. During the fourteen quarter period under consideration in this report, TIO shows a linear increasing trend a indicated by the broken orange trend line in the figure below.

    PAT in Q1-2016 at Rs 151.06 crore (six per cent margin) declined 14.8 per cent as compared to the Rs 177.27 crore (6.1 per cent margin) and was 29.8 per cent lower than the Rs 215.09 crore (9.6 per cent of TIO) in Q4-2015. PAT in absolute rupees and in terms of percentage of TIO (margin) show a linear increasing trend as indicated by the broken military green and broken grey trend lines in the figure below.

    Company speak

    Titan managing director Bhaskar Bhat said, “The first quarter this year has been an extremely challenging one. Retail sales for both our core businesses watches & jewellery, have been below expectations due to reduced walk-ins. May and June, in particular were poor months. Rural demand too was affected due to lower realizations and monsoon conditions. With good monsoon in sight and festive season ahead, we look forward to a better year ahead. ”

  • FY-2015: Titan revenue up 9%, ad spends down 5.5%

    FY-2015: Titan revenue up 9%, ad spends down 5.5%

    BENGALURU: Titan Company Limited reported nine per cent increase in Total Income from Operations (TIO, revenue) in FY-2015 to Rs 11913.41 crore as compared to the Rs 10927.39 crore in FY-2014. The company’s profit after tax (PAT) for the year increased 11.1 per cent to Rs 816.26 crore from Rs 734.94 crore in the previous year.

    The company spent 5.5 per cent lower amount at Rs 382.13 crore (3.21 per cent of TIO) towards advertising in FY-2015 as compared to the Rs 404.43 crore in FY-2014.

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    Businesses and Brands

    Titan has three revenue segments – watches comprising brands namely Titan, Xylus, Nebula, Sonata and Fastrack and Zoop; Jewellery with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

    During the current quarter, sales value of World of Titan grew 11 per cent; Tansihq sales value declined 21 per cent, Goldplus declined 4 per cent, Helios declined 3 per cent, Fastrack grew 1 per cent, LFS and Titan Eye+ grew 10 and 14 per cent respectively.

    Watches

    The watch segment saw an increment of two per cent in volumes in FY-2015 as compared to FY-2014. Net sales for the segment grew 7.3 per cent to Rs 1921 crore in the current year from Rs 1791 crore in FY-2014.

    Though Q4-2015 saw a fall of six per cent in volume as compared to Q4-2014, revenue increased 1.8 per cent to Rs 511 crore from Rs 502 crore in the corresponding year ago quarter on the back of increment of prices.

    Jewellery

    Titan’s jewellery distribution brands are Tanishq and Goldplus from Tata. Jewellery contributes about 80 per cent to Titan’s TIO. The segment’s sales grew eight per cent (excluding coins) in volumes in FY-2015 as compared to FY-2014. Sales revenue grew 9.2 per cent to Rs 9240 crore in FY-2015 from Rs 8632 crore in FY-2014. During the year the company witnessed a grammage growth of eight per cent, (including coins) and six per cent excluding coins. Also, the share of studded jewellery increased to 32 per cent from 30 per cent in FY-2015. The company says that it saw a customer growth of 13 per cent in the jewellery segment during the year.

    Q4-2014 was a quarter of falls for Titan’s jewellery segment. For Q4-2015, volumes witnessed a fall of 16 per cent as compared to Q4-2014, while sales of jewellery fell 15.3 per cent to RS 1828 crore from Rs 2157 crore in Q4-2014. Customers declined seven per cent in the quarter. While studded jewellery witnessed an 18 per cent decline during the quarter, it retained the same share of 37 per cent as last year.

    Others

    The ‘Others’ segment reported 12.9 per cent revenue growth to Rs 565 crore in FY-2015 from Rs 500 crore in Q4-2014. Eyeware witnessed a growth of 24 per cent and returned an operating profit of Rs 4 crore. For Q4-2015, the segment reported 12.8 per cent increase in revenue to Rs 165 crore from Rs 146 crore in Q4-2014.

    Trends

    Titan’s ASP declined 8.1 per cent in Q4-2015 to Rs 80.30 crore (3.22 per cent of TIO) from Rs 87.37 crore (3.12 per cent of TIO) in Q4-2014 and was 17 per cent lower than the Rs 96.75 crore (3.31 per cent of TIO) in Q3-2015. Please refer Fig A below. During a 13 quarter period starting Q4-2012, Titan’s ASP was highest in terms of absolute rupees in Q3-2014 at Rs 118.04 crore (4.41 per cent of TIO). It was highest in terms of per centage of TIO in Q1-2013 at 4.69 per cent of TIO (Rs 103.44 crore).

    Though ASP shows a declining trend both in terms absolute rupees and in terms of per centage of TIO, on calculation, the brown trend line actually indicates ASP as 3.15 per cent of TIO, while the actual amount spent by the company was 0.07 per cent more as mentioned above for Q4-2015. On calculation, the blue trend line indicates ASP in absolute rupees as Rs 96.48 crore as opposed to the actual Rs 80.30 crore spent by the company in Q4-2015.

    TIO and PAT

    Please refer to Figure B below. The company’s TIO in Q4-2015 fell 11 per cent to Rs 2496.19 crore from Rs 2803.38 crore in Q4-2014 and was 14.6 per cent lower than the Rs 2922.51 crore in the immediate trailing quarter. During the thirteen quarter period under consideration in this report, TIO shows a linear increasing trend.

    PAT in Q4-2015 at Rs 215.09 crore (9.6 per cent of TIO) was 4.3 per cent more than the Rs 190.73 crore (7.4 per cent of TIO) in Q4-2014 and was 12.8 per cent more than the Rs 190.73 crore (7.1 per cent of TIO) in Q3-2015. PAT shows a linear increasing trend during the 13 month period under consideration.

    Company speak

    Titan managing director Bhaskar Bhat said, “The economic outlook for the year 2014-15 was quite good but improvement in consumer demand has been quite lukewarm. Our jewellery business was also adversely impacted due to regulatory changes and termination of the consumer friendly Golden Harvest Scheme. All our brands witnessed good growth during the first half but post Diwali season we have seen tapering of growths. The Company will however continue to invest in strategic initiatives taking into account our long term and sustainable growth plans.”

  • Q3-2015: Titan q-o-q income, PAT and ad spends down

    Q3-2015: Titan q-o-q income, PAT and ad spends down

    BENGALURU: Titan Company Limited  reported lower q-o-q Total Income from Operations (TIO) and Profit After Tax (PAT) in Q3-2015 as compared to the corresponding numbers reported in the immediate trailing quarter Q2-2015.

    The company also spent 8.6 per cent less towards advertisement (ASP) in Q3-2015 at Rs 96.75 crore (3.3 per cent of TIO) as compared to the Rs 105.83 crore (2.9 per cent of TIO) in Q2-2015 and 18 per cent less than the Rs 118.04 crore (4.4 per cent of TIO) in the corresponding quarter of last year. (Refer to Fig A below).

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

    Over a 12 quarter period starting Q4-2012 until the current quarter (Q3-2015), Titan’s ASP shows an upward linear trend in absolute rupees, but a downward linear trend in terms of percentage of TIO. Titan’s simple average ASP in terms percentage of TIO during these 12 quarters is 3.6 per cent. The company’s highest ASP during the 12 quarters under consideration has been in Q3-2014 at Rs 118.04 crore (4.4 per cent of TIO) in terms of absolute rupees. In terms of percentage of TIO, ASP was highest at 4.7 per cent of TIO (Rs 103.44 crore) in Q1-2013 during the same 12 quarter period.

    Titan’s lowest ASP during the quarters under consideration was in Q4-2013, both in terms of absolute rupees and percentage of TIO at Rs 66.63 crore (2.5 per cent of TIO)

    Income and PAT

    Titan’s TIO in Q3-2015 at Rs 2922.51 crore was 18.7 per cent lower than the Rs 3593.07 crore in Q2-2015 and 9.2 per cent more than the Rs 2675.77 crore in the corresponding quarter of last year. TIO shows a linear increasing trend during the 12 quarter period under consideration.

    Titan’s PAT in Q3-2015 at Rs 190.73 crore (7.1 per cent of TIO) was 20.5 per cent less than the Rs 239.98 crore in Q2-2015 and 15.2 per cent more than the Rs 165.57 crore in Q3-2014. PAT shows a slightly increasing trend in absolute rupees and an almost flat to a slightly downward trend in terms of per centage of TIO during the 12 quarter period in this report.

    Businesses and Brands

    Titan has three revenue segments – watches having the brands –Titan, Xylus, Nebula, Sonata and Fastrack and Zoop; Jewellery with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

    Jewellery contributes about 80 per cent to Titan’s TIO. Last quarter (Q2-2015), its jewellery distribution brands Tanishq and Goldplus from Tata showed an upsurge in retail sales by as much as 75 per cent and 84 per cent respectively. In the current quarter, Goldplus from Tata grew by 30 per cent, however, Tanishq disappointed with a drop of 4 per cent in sales.  Though the jewellery segment reported a 11.2 per cent y-o-y growth to Rs 2347 crore (80.3 per cent of TIO) from Rs 2111 crore (78.9 per cent of TIO), q-o-q, the segment reported a slump of 19.9 per cent from Rs 2929 crore (81.5 per cent of TIO).

    The Helios brand from Titan’s Watches business segment in terms of sales also disappointed with a drop of 3 per cent in sales in Q3-2015. ‘Watches’ is Titan’s second largest business segment in terms of sales and contributes about 15-17 per cent to Titan’s TIO. Watches segment reported a y-o-y growth of 0.4 per cent to Rs 453 crore (15. 5 per cent of TIO) in Q3-2015 from Rs 451 crore(16.9 per cent of TIO) in Q3-2014, and a drop of 14 per cent from the Rs 527 crore (14.7 per cent of TIO) in Q2-2015.

    The ‘Others’ segment reported 2.9 per cent drop to Rs 134 crore (4.6 per cent of TIO) in Q3-2015 from Rs 138 crore (3.8 per cent of TIO) in Q2-2015 and a growth of 15.5 per cent from Rs 116 crore (4.3 per cent of TIO) in Q3-2014.

    Company Speak

    Titan managing director Bhaskar Bhat said, “Titan Company, with a large portfolio of strong brands, operating in multiple industries, grew by over 9 per cent in the third quarter. This period, which is a festival quarter, faced heightened activity from e-commerce players participating in this gifting season. Going forward the market sentiment is looking good, with the fiscal budget from the new government coming up, drop in inflation and positive global factors like slump in oil prices. The company is gearing up for the last quarter with the launch of new products and advertising campaigns that are lined up, including activation from some brands.”

  • Jewellery leads Titan’s 54.3 percent Op Inc 29 per cent PAT growth in Q2-2015

    Jewellery leads Titan’s 54.3 percent Op Inc 29 per cent PAT growth in Q2-2015

    BENGALURU:  For the past few quarters, Titan Company (Titan) jewellery business has been pulling down the company’s numbers. This quarter (Q2-2015 which ended 30 September 2014), this business under its jewellery distribution brands Tanishq and Goldplus from Tata showed an upsurge in retail sales by as much as 75 per cent and 84 per cent, respectively. Overall, as per Titan’s investor presentation, jewellery business witnessed y-o-y growth in net income of 64.8 per cent from Rs 1,777 crore in Q2-2014 to Rs 2,929 crore in the current quarter.

    Note : 100,00,000 = 100 Lakhs = 10 million = 1 crore

    The company’s Total Income from Operations (TIO) went up 54.3 per cent in TIO to Rs 3593.07 crore in Q2-2015 from Rs 2328.97 crore in the corresponding year ago quarter and grew 24.3 per cent from Rs 2891.44 crore in the immediate trailing quarter Q1-2015.

    Titan has three revenue segments – watches having the brands –Titan, Xylus, Nebula, Sonata and Fastrack and Zoop; Jewellery (the largest segment in terms of revenue and consequently profits) with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

    Titan MD Bhaskar Bhat said, “This was an extra-ordinary quarter for the company and we witnessed an income growth of over 55 percent on account of an encouraging performance by all divisions, especially the jewellery business where the accounts of our Golden Harvest Scheme customers had to be closed based on regulatory changes. We have also seen an improvement in consumer sentiment in the second quarter and many of our brands ran successful activations to build on this sentiment and the festive mood. Gold prices have been stable and inflation is falling which would help in providing a lift to the economy. However, the coming quarter will have to be observed and tackled appropriately as some channels are beginning to report lower walk-ins. All our brands will invest in new campaigns in this quarter to improve our connect with the consumer.”

    Titan’s Watches division has also done well in the quarter backed by successful activations for both Titan and Fastrack brands, says the company in its press release. A new brand campaign on ‘gifting of time’ went on air for Titan watches. The income for watches was Rs 527.46 crore in Q2-2015 as compared to Rs 439.07 crore in the corresponding quarter last year.

    Other businesses of the company comprising Precision Engineering, a B2B business, the Eyewear business and accessories grew by 20.9 percent in Q2-2015 versus Q2-2014. The combined income of these businesses was Rs 137.90 crore in the current qaurter. Their last year income for Q2-2014 was Rs 114.03 crore.

    The company has spent higher amount towards advertising (ASP) in Q2-2015 at Rs 105.83 crore (2.9 percent of TIO), which was 12.2 percent higher than the Rs 94.35 crore (4.1 percent of TIO) in Q2-2014 and 6.6 percent more than the Rs 99.25 crore (3.4 percent of TIO) in Q1-2015.

    Over the 11 quarter period starting Q4-2012, Titan’s ASP shows an increasing trend in absolute rupee terms, but in terms of ASP as percentage of TIO, the trend shows a decline. Please refer to Fig A below.
    During the period under consideration, the company’s highest ASP in absolute rupee terms was in Q3-2014 at Rs 118.04 crore (4.4 percent of TIO). This was the highest ASP in FY-2014. Q3-2013 ASP was also the highest in FY-2013 at Rs 108.76 crore (3.6 percent of TIO).

    Also, during the period under consideration, the company’s highest ASP in terms of percentage of TIO was in Q1-2013 at 4.7 percent (Rs 103.44 crore). Historically, during the period under consideration, though Titan’s Q2-2013 TIO was higher than the TIO in Q1-2013, the company’s ASP had gone up in absolute rupee terms in Q3-2013, but was lower in terms of percentage of TIO as compared to both Q1-2013 and Q2-2013.

    In Q1-2014, the company’s ASP was higher in absolute rupees at Rs 104.67 crore as compared to the Rs 94.35 crore in Q2-2014. However, in terms of percentage of TIO, Titan’s Q1-2014 ASP at 3.4 percent was lower than the 4.1 percent in Q2-2014 or the 4.4 percent in Q3-2014.

    If the company wants to push towards record sales and profits in FY-2015, the chances of the company spending more towards advertising spends in Q3-2015 are quite high going by what Bhat has said in the company’s earnings release.

    Y-o-y the company’s PAT improved 28.6 percent to Rs 239.98 crore in Q2-2015 from Rs 186.65 crore and went up by 35.4 percent from Rs 177.27 crore in Q1-2015. Please refer to Fig B below.

    During the 11 quarter period under consideration, Titan’s PAT shows an upward trend in absolute rupee terms, but seems to have flattened out at about 7.2 percent of TIO, maybe could even decline fractionally.

  • Brand-comm ‘webinar’: Consumer insight best tool

    Brand-comm ‘webinar’: Consumer insight best tool

    MUMBAI: Consumer trends on the web were discussed at Brand-comm’s web seminar BrandWidth Online 2006.

    The seminar was addressed by Titan Industries managing director Bhaskar Bhat, McCann Erickson president Santosh Desai and Brand-comm CEO Ramanujam Sridhar.

    The seminar drove home the thought that consumer insight is the greatest tool, after all for marketers who want to keep pace in the changing market scenario.

    Some interesting questions to the panelists were on the movement behind the traditional Indian woman rising above her passivity, on consumer insights providing the way-forward for marketers and the role of technology in the consumer decision process. The panelists discussed the ‘More-Mania’ and the key drivers of consumer behavior in India.

    The seminar had 78 participants who logged in from different parts of the country.

  • Brand-comm ‘webinar’: Consumer insight best tool

    Brand-comm ‘webinar’: Consumer insight best tool

    MUMBAI: Consumer trends on the web were discussed at Brand-comm’s web seminar BrandWidth Online 2006.

    The seminar was addressed by Titan Industries managing director Bhaskar Bhat, McCann Erickson president Santosh Desai and Brand-comm CEO Ramanujam Sridhar.

    The seminar drove home the thought that consumer insight is the greatest tool, after all for marketers who want to keep pace in the changing market scenario.

    Some interesting questions to the panelists were on the movement behind the traditional Indian woman rising above her passivity, on consumer insights providing the way-forward for marketers and the role of technology in the consumer decision process. The panelists discussed the ‘More-Mania’ and the key drivers of consumer behavior in India.

    The seminar had 78 participants who logged in from different parts of the country.