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
- 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 |
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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. | |
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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.