Titan Q4 results preview: Jewellery segment to fuel revenue growth, retail footprint expands

Growth in consumer discretionary major will be led by its jewellery segment, as the improved wedding segment performance drove performance.

Domestic brokerage Motilal Oswal noted that the jewellery segment will grow 18.5 percent, with a five-year revenue CAGR of 21.4 percent. Both buyer and same-store sales growth in the jewellery division achieved double-digit expansion.

However, the PAT will not grow as much as previous expected, per Emkay Global, largely due to higher interest expense on account of the Caratlane stake acquisition.

Also Read | Titan Company: Steady growth led by jewellery; strong long-term growth prospects

As per Q4 business update, the emerging business segment is anticipated to witness a significant 24 percent year-on-year growth, with Caratlane's sales expected to soar by 30 percent. Meanwhile, watch sales saw a 6 percent YoY rise, following a significant 21 percent growth in the previous quarter. The eyewear segment sales were under pressure, with a decline of 1 percent.

According to Centrum Broking, despite fierce competition in jewellery, Titan is expected to maintain operating margin given competitive edge in design and sourcing and higher ticket size with further improvement in studded ratio.

In its quarterly business update, Titan reported robust performance and expansion of its retail footprint. The addition of 86 stores further bolstered its retail network, which now stands at 3,035 stores.

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