Titan Jewellery Division Q3 Profit up by 37%; continues to emerge successful in a dull market scenario
Golden harvest and gold exchange schemes are growth drivers, in addition to CaratLane recording a 43% growth, primarily due to network expansion
Tanishq had a good festive season and recorded strong revenue growth of 37%, on back of strong growth in both studded and plain jewellery category.
Plain category also benefitted from a large institutional order of ~INR 200 crores of gold coins.
EBIT margin was higher at 13.3% led by higher gross margins, lower discount, inventory valuation loss recovered from the last quarter (INR 18 crores), lower advertising spends in the quarter as well as operating leverage driven by strong revenue growth.
Studded ratio was line with the previous year at 25%. Golden Harvest and Gold exchange programmes continue to drive customer acquisitions.
Tanishq added 24 stores in 9M FY’19, adding 65k square feet, on net basis. CaratLane (67% owned Subsidiary)
Caratlane's revenue recorded a 43% growth, primarily due to network expansion.
It continues to enjoy good gross margins in YTD, compared to previous year, on the back of better pricing and product mix.
Caratlane added 14 stores to its network, in 9M, FY ‘19, taking the total store count to 50.
In a Nutshell
- 277 showrooms of Tanishq (Net 24 added in 9M FY’19)
- 172 towns – 1.07 mn sq.ft. of Tanishq (Net 65k sq.ft. added in 9M FY‘19)
- 3 Zoya stores (~15K sq.ft.)
- 28 Standalone Mia stores and 20 Shop-in-shops (~11k sq.ft.)
- 50 Caratlane showrooms across 18 towns (~34k sq.ft.)