Titan Company declares 4.6 times YoY increase in ad spends to Rs 171 crore in Q1FY23

Titan Company increased its advertising spends 4.6 times to Rs 171 crore in the quarter ending June 30, 2022, from Rs 37 crore in the corresponding quarter of the previous year on a standalone basis. 

The company had spent Rs 156 crore on advertising in Q4FY22. Altogether, Titan spent Rs 474 crore on advertising in the financial year 2022. 

Titan Company said that it has recorded its second-best quarterly revenue in Q1FY23 buoyed by strong festive demand in a near normal Q1 that came after a gap of two Covid disrupted periods of Q1 FY21 and Q1 FY22.

Its Q1 FY23 net profit stood at Rs 793 crore in comparison to Rs 61 crore in the same quarter last year. Its total revenue from operations jumped to Rs 8,961 crore from Rs 3,249 crore (YoY).

The company recorded one of the highest profit before taxes (PBT) of Rs 1,066 crore for the quarter, in comparison to Rs 82 crore in Q1 FY22. 

Titan Company’s jewellery business registered an income of Rs 7,600 crore in Q1 FY23 compared to Rs 2,467 crore in Q1 FY22 (excluding bullion sale), a growth of 208% riding on good Akshaya Tritiya sales and a better-studded mix compared to the same quarter previous year.

The watches and wearables business reported its best quarterly income of Rs 785 crore with 169% growth in Q1 FY23 compared to Rs 292 crore in Q1 FY22.

Eye Care business also reported its highest quarterly income of Rs 183 crore with 173% growth in Q1FY23 compared to Rs 67 crore in Q1 FY22. Other businesses comprising Indian dress wear and Fragrances and Fashion Accessories reported an income of Rs 56 crore in Q1 FY23 compared to Rs 14 crore in Q1 FY22, a growth of 300%.

Titan added (net) 125 stores during the year. The company's retail chain (including Caratlane) has 2,303 stores across 366 towns.

Among subsidiaries, Caratlane Trading reported a revenue of Rs 482 crore and a profit of Rs 27 crore (before taxes) for the quarter compared to a revenue of Rs 157 crore and a loss of Rs 9 crore in the same quarter of the previous year.

Titan Engineering and Automation (TEAL) reported a revenue of Rs 88 crore and a loss of Rs 6 crore (before taxes) compared to a revenue of Rs 65 crore and a loss of Rs 1 crore in the same quarter of the previous year.

CK Venkataraman, Managing Director, Titan Company, stated, "The financial year has begun well for us and we delivered a strong performance in Q1 across our business segments. Despite challenging macro environment, the outlook for the remaining quarters looks positive and we continue to execute our investment plans in India as well as chosen international geographies." 

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