just a very personal view… when one starts earning the salary available is lower, therefore one takes junk jewellery, as one starts earning better, gets married and moves to the more “matured” life cycle, they start looking at gold jewellery?
Disclosure: MALE (therefore purely a theoretical/gut feel), invested in Titan
Latest Investor Presentation. Q3 performance (from page 36)
https://www.bseindia.com/xml-data/corpfiling/AttachLive/f0b5a3f8-ec33-4f52-b0a0-bc33b1a531cd.pdf
another disruption; and its a threat to the company; how the habits are changing.
No brainer that watches revenue de-grew by 2% YOY in this quarter
Smartwatch is a picking category in India but market share is relatively low. We sold 17 million watches last year among this figure the share of smart was comparatively insignificant. There would always be a consumer base for watches which are exclusively designed with unique story behind. At titan, we are committed to inculcate new design stories along with investing in Smart Watch category.
https://www.sonatawatches.in/stride
According to S Ravi Kant, CEO, watches and accessories of Titan, more recent transformations in the industry have been driven by e-commerce and wearables. “E-commerce helped open up the market and bring wide access to the category, further fuelling growth. Smart watches and wearables were pioneered by tech and mobile handset giants, with the launch of smart wrist gadgets. Through partnerships with global firms like HP, Intel and other start-ups, we have introduced several smart watches in our portfolio,” says Kant. The brand is now paying equal attention to accessorising and grooming, which is an accentuated need among youth. The best example to quote here is Fastrack. To improve fitness through wearable bands with features like step count and sleep tracking, Fastrack has emerged as an important gadget-cum-watch.
Best part about good companies like Dmart, Bfin , titan etc is that they are constantly ready for changes/disruption and have lots of multiple revenue streams
Disc - Invested
I have a query…Despite reporting profits consistently, why titan is not generating proportional cash from its business? We must investigate the quality of the earning from the business…Attaching data for reference… Views are welcomed.
The dilemma is to get people to dress up and celebrate special occasions even while they are at home. After all, in the new normal, post the lockdown people would continue to stay and work out of home. Going out to restaurants or attending weddings and parties will be out of bounds till a vaccine for Coronavirus is invented. “This has put pressure on dressing up and the challenge we are dealing with is how do we create desire when consumers are sitting at home,” says Venkatraman.
The company’s jewellery arm has recently launched video-assisted shopping on its web site. A consumer can request for a video call and the sales-person at the store would do a virtual display of the jewellery. Venkatraman says once the lockdown is lifted, the company would even encourage home trials of jewellery.
Titan Q4 Results…Delivered better than expected results. Dividend Rs.4/- per share has been announced.
Titan Quarterly Business Update: Q1FY21
Jewellery
Watches & Wearables
Eye Wear
CaratLane
CaratLane did relatively well in the quarter with revenue in May and June months at 23% and 85% respectively compared to the same months of the last year
Taking digital media to next level :
Disc : Invested in my satellite portfolio.
31:45 for RJ questions. 
At 48:00 he again asked a question, this one is interesting.
Titan introduces countrys first payment watch.
This is hallmark of innovative companies
Takeaways from the earnings conference call
Jewelry segment— Revenues declined about 2% excluding sale of gold bullion of Rs3.9
bn. Volume was down 31% yoy (gold price up 38% yoy). Coin sale share was 14% in
2QFY21 versus 3% in 3QFY20 and studded share was 26% in 2QFY21 versus 38% in the
base quarter. We note that hedging loss of Rs1.2 bn was netted from revenues in the
base quarter whereas it is included in other expenses in the current quarter; adjusted for
this revenues declined about 6% yoy (excluding bullion sales). Retail sales declined 4%
yoy and were down 9% (like-for-like). Tanishq launched Ekatvam collection during the
quarter.
Segmental EBIT margin excluding gold bullion sales stood at 8.3% (reported margin of
7.5% was impacted by bullion sales) as against 10.9% in the base quarter. Weak margin
print is attributable to lower salience of studded jewelry (26% in 2QFY21 versus 38% in
base quarter) and provision of Rs340 mn (90 bps impact).
Outlook— Revenue growth during the festive period (Navratra) in October is up in high
single digit on like-for-like basis. The management is targeting 90-100% recovery in
3QFY21. Early trends indicated recovery in studded ratio. Golden Harvest scheme
enrolments are gathering momentum.
Caratlane reported strong recovery with growth of about 10%. It turned EBIT positive
aided by cost reduction measures.
Watches segment— Revenue declined 44% in 2Q. Revenue decline in September
month was 30%. Ecommerce is leading the recovery with absolute growth but the trade
channel continues to pose challenges primarily due to destocking. The management is
targeting 75-80% of base quarter sales in 3QFY21. Segmental EBIT margin was negative
1%, broadly in line with our expectation PBT loss was restricted Rs40 mn led by cost
savings.
Eyewear segment— Revenue declined 39%; recovery rate in the month of September
was about 70%. Segmental EBIT margin was 9.6%, as against 1.3% in the base quarter;
sharp improvement in profitability despite adverse operating leverage is attributable to
lower discounting. The management is targeting 75-80% of base quarter sales in
3QFY21.
Other highlights— (1) Titan has taken a provision of Rs340 mn pertaining to receivables
from a commodity broker, (2) recovery rate in fragrances was about 50%, dragged by
lower walk-ins in large format stores, (3) the management has indicated that its ‘War on
Waste’ program is tracking ahead of expectations. Despite the higher requirement of
inventory in the festival season and recent increase in Gold prices, the Jewellery division
has maintained the inventory levels (in value terms while reducing the tonnage of Gold),
compared to Mar-20, by reducing the inefficiencies and selling part of gold, received
through the exchange program, in the bullion market. Rent reduction/waiver pertaining
to 2QFY21 was Rs260 mn (included in other income).
It is write-down for an investment. They had bought a Swiss watch company
Write down of Favre Leuba - One of the oldest swiss watch manufacturer
