SEC 79 / 2022-23

8th February 2023

The General Manager, DCS - CRD

The General Manager, DCS - CRD

BSE Limited

National Stock Exchange of India Ltd

Corporate Relationship Department

Exchange Plaza,

1st Floor, New Trading Ring

Bandra-Kurla Complex,

Rotunda Building, P J Towers

Bandra (East),

Dalal Street, Fort,

MUMBAI - 400 051

MUMBAI - 400 001

Symbol: TITAN

Scrip Code: 500114

Dear Sirs,

Sub: Earnings Call Transcripts

Pursuant to Regulation 46(2)(oa) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform the exchanges that the transcript of audio call recording of the Company's Analyst Call to discuss the Unaudited Financial Results (standalone and consolidated) for the third quarter and nine months ended 31st December 2022 is attached herewith.

The transcript is also available on the website of the Company: www.titancompany.in

Kindly take the same on record and acknowledge receipt.

Yours truly,

For TITAN COMPANY LIMITED

DINESH

Digitally signed

by DINESH

SHIVANN SHIVANNASHETTY

  1. SHETTY Date: 2023.02.08 20:46:41 +05'30'

Dinesh Shetty

General Counsel & Company Secretary

Encl. As stated

Titan Company Limited

`INTEGRITY` #193 Veerasandra Electronics City P.O. Off Hosur Main Road, Bangalore 560100 India. Tel: 9180 6704 7000 Fax: 9180 6704 6262 Registered Office 3, Sipcot Industrial Complex Hosur 635 126 TN India. Tel-91 4344 664 199 Fax 91 4344 276037, CIN: L74999TZ1984PLC001456 www.titancompany.in

"Titan Company Limited

Q3 FY '23 Earnings Conference Call."

February 02, 2023

.

MANAGEMENT:

MR. C.K. VENKATARAMAN

- MANAGING DIRECTOR - TITAN

COMPANY LIMITED

MR. ASHOK SONTHALIA

- CFO, TITAN COMPANY LIMITED

MR. AJOY CHAWLA

- CEO, JEWELLERY DIVISION

MS. SUPARNA MITRA

- CEO, WATCHES & WEARABLES

DIVISION

MR. SAUMEN BHAUMIK

- CEO, EYECARE DIVISION

MR. MANISH GUPTA

- CEO, FRAGRANCES AND FASHION

ACCESSORIES DIVISION

MR. AMBUJ NARAYAN

- CEO, INDIAN DRESS WEAR DIVISION

MR. KURUVILLA MARKOSE

- CEO, INTERNATIONAL BUSINESS

Page 1 of 19

Titan Company Limited

February 02, 2023

Moderator:

Ladies and gentlemen, good day, and welcome to Titan Company Limited Q3 FY '23 Earnings

Conference Call. As a reminder all participant lines will be in the listen-only mode and there

will be an opportunity for you to ask question after the presentation concludes. Should you need

assistance during the conference call, please signal an operator by pressing star and then zero on

your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. C. K. Venkataraman, Managing Director, Titan Company

Limited. Thank you, and over to you Sir.

C K Venkataraman:

Thank you very much. Welcome to the quarter 3 earnings call of Titan Company to everyone on

the call. As you would have seen from the presentation on the retail sales growth for the quarter

has been very satisfying and across all businesses. And the rest of the material is there on the

presentation and I presume you have had some chance to look at it and we can straightaway dive

into the questions.

Moderator:

We have a first question from the line of Avi Mehta from Macquarie.

Avi Mehta:

Just wanted to -- first of all, congratulations on the performance. Wanted to understand the

demand trends, how have they been shaping up in January? And in particular, if you could give

us some understanding of the jewellery business, given the sharp price -- sharp increase in gold

prices?

Ajoy Chawla:

Hi Avi. Ajoy here. Yes, Jan has been quite interesting as gold prices have been shooting up since

December and in Jan as well. But having said that, we are seeing a very good demand in Jan.

We are very happy. We know that last year, Jan was impacted by Omicron and therefore, it was

a weaker Jan month. But despite that, we are seeing a very, very healthy growth in jewellery,

including gold jewellery and studded both despite the gold price rise. So we are quite happy and

gung-ho.

Avi Mehta:

Would you say this is on a 3-year CAGR basis that you're looking at as in pre-COVID just to --

because obviously, Y-o-Y base growth rates might be, as you rightly alluded there's Omicron in

the base. So even on the 3-year trajectory it's broadly in line with what we saw in third quarter.

C K Venkataraman:

Yes. No, no, it's good. It's very good. Over a 3 years CAGR, it's even better.

Avi Mehta:

Okay. And on the other segments as well, if it's possible to share, especially in the watches and

the eyewear?

Suparna Mitra:

Yes. So this is Suparna here. Watches also -- watches and wearables, we've seen a good Jan.

And like Ajoy mentioned, this is not only on last year's retail as on the Jan 2020 base also. So

quite happy with the retail growth.

Page 2 of 19

Titan Company Limited

February 02, 2023

Saumen Bhaumik:

Hi Avi. Saumen from eyecare. We had a good month. I mean last year, this is -- growth is about

40%. And if I look at FY '20 January, it is 37%. So full marks.

Avi Mehta:

Okay. Perfect. The second bit also on the margins, especially on the watch side. I mean, last

quarter, you had indicated that in the near term, we will -- we see a 13% to 14% margin kind of

panning out in the watch business. Just wanted to kind of clarify, was this more the annual

expectation or was this -- and whether this quarter or with this quarter kind of changes that

expectation in any manner?

Suparna Mitra:

No. This quarter, the margin is lower because of some product channel and category mix issues.

But if you see the YTD margins, it is in that ballpark of about 13% and our outlook remains in

that range.

Avi Mehta:

Okay. Perfect. Just one clarification, Ajoy. When you say good, is there any range that you could

share with us? Any understanding of what we mean by good it would be useful to appreciate.

That's all from my side.

Ajoy Chawla:

I wish I could, but I think there are some pretty stringent regulations on what we can share

without having put it out on the stock exchange, no. So apologies for that, but we are very happy

is the best we can say.

Moderator:

We have our next question from the line of Percy Panthaki from IIFL.

Percy Panthaki:

Just wanted to ask on margins. So we've done around 13% in jewellery this quarter. For next

year, would you stick to that guidance of 12% to 13%? Or do you actually think that it's probably

going to be sort of at the higher end of that band or might even exceed it?

Ashok Sonthalia:

So Ashok here. I think we have been answering this question quite consistently, but it will be

12% to 13% which business is targeting. Higher and lower commenting for next year is too

premature, but that's the channel where definitely team is trying to keep it while achieving

growth centers, which are industry-leading.

Percy Panthaki:

Right, sir. Secondly, just wanted to understand, you did mention that despite gold price going

up, the demand is good. So what is really driving that? Because in the past, we have seen that

when gold prices are sort of volatile, the customer stays back and does not purchase. So why is

it different this time around?

Ajoy Chawla:Yes. Actually, it's something which we've been trying to figure out. In the month of November

  • mid-Novemberor December onwards, we saw a greater impact of that volatility on customer sentiment for gold jewellery. That time, the studded piece picked up a bit and therefore, we were able to see some good growth. But having said that, in the month of Jan, somehow that has not

Page 3 of 19

Titan Company Limited

February 02, 2023

held back customers. My own hypothesis is that people might have been deferring their

purchases in November, December because of this volatility.

But come Jan, the outlook also looks like gold may continue to remain high, and it might even

climb higher. So -- and there is weddings, etcetera. So therefore, I think people are now kind of

decided to get into the market, having waited a little bit in December. But that's a personal

hypothesis, I really don't have a deep database insight on this.

Percy Panthaki:

Right. And for the quarter Q3, basically, can you give some colour on basically the split up of

SSSG between how much of it is due to higher transactions and how much of it is due to a higher

bill value? I mean even if you can't give the exact numbers, any flavour would also help.

Ajoy Chawla:

Sure, sure, sure. So happy to share with you same-store growth. I think that 15-odd percent of

retail growth, which includes Tanishq Mia Zoya, okay? The Tanishq retail growth is 14% as in

the presentation. But if I look at the 3 brands put together, it's around 15.1%. And the same-store

growth during quarter 3 is around 9%. In terms of what has driven growth, very interestingly, a

majority of the growth has been driven through buyer growth. And some part of it is through

ticket size growth.

And ticket size growth is a function of both the gold price as well as the diamond prices have

been on the higher end. So -- but yes, very happy to hear that -- from our side that it is a growth

which has been driven by buyers. And specifically, we have gained a little bit more on new

buyers.

Moderator:

We have a next question from the line of Arnab Mitra from Goldman Sachs.

Arnab Mitra:

My first question was again on the demand side. I think last quarter, you had mentioned that

there was some slowdown in the lower end of your portfolio in jewellery. Has that been a trend

which has continued and anything that concerns you on that side?

Ajoy Chawla:

It's a mixed bag. There is some pluses and minuses, which we are seeing in quarter 3. Yes, on

the lower price and on studded, there was a little bit of slowing down, but on the gold, it was on

the positive, it was not slowing down. It seems to show upswing, maybe driven by festive. But

in Jan, again, I'm seeing that that is no longer a concern. It's kind of come back strongly. So, it's

a bit volatile at this stage.

We are at least pushing more aggressively on trying to increase the number of buyers and

therefore, feed the top of the funnel in terms of buyer and new customer acquisition and that's

working. So right now not a concern, but yes, it's on the -- we are watching out for it more

closely.

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Titan Company Limited published this content on 08 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2023 10:32:04 UTC.