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Time of India
4 days ago
- Business
- Time of India
Stress in Rs 50k-1 lakh price points: Titan's jewellery biz head
File photo MUMBAI: Geopolitical uncertainty and trade tariff jitters are weighing on hiring and new job openings in certain sectors, impacting discretionary spending by consumers across sectors ranging from apparel to auto. In the jewellery space which still has an edge given the intrinsic value gold and diamond hold, spends have been a bit better comparatively but fluctuating gold prices have hit demand in the sub Rs 50,000-1 lakh (pricing) category, said Ajoy Chawla, CEO of jewellery division at Titan. Mass markets are largely bearing the brunt of the surrounding uncertainty at least in the jewellery space; premium and luxury segments continue to fare well. 'Sentiment has been subdued in the lower price points, the customer there is beginning to feel the pinch of high gold prices. 'At the same time, some are going through tough times (referring to factors such as job uncertainty) ….and customerers are a bit under pressure. Uncertainity taking a toll Many international IT/tech companies have been reducing jobs and some of that is kind of flowing back. The volatility that we have come to live with now for the past five-six quarters continues,' Chawla told TOI in an interview on the sidelines of a company event here on Friday, adding that early end of season sales being rolled out by certain firms (across industries) indicate wobbly demand. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas Prices In Dubai Might Be More Affordable Than You Think Villas In Dubai | Search Ads Get Rates Undo Fluctuating sentiment 'The sentiment is not bad but it is fluctuating…uncertainty affects consumers in different ways. The greatest stress is below Rs 50,000 and 1 lakh segment in both gold and diamond,' Chawla said, pinning hopes on tax breaks to partly lift broader consumption through the course of the year. For Titan which owns brands Tanishq and Zoya, the June quarter has been decent but it could have been better, said Chawla who is set to take over as the MD of Titan from Jan 1. Consumers in the mass segment may shift to jewellery with lesser gold content and light weight items and the industry as a whole will need to innovate to boost demand in the near-term. 'We are getting people used to lower caratage products in gold. We have piloted it in the North and the East and the initial response has been good. All the fundamentals of the India growth story are here. We have to stimulate demand in the short run, manage our inventory and gold prices with agility,' Chawla said. There's also a push to bolster the trust of people in diamonds which only has a 15% penetration in India. To this end, Tanishq has partnered with De Beers Group to set up diamonds expertise centres across its stores. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
08-07-2025
- Business
- Business Standard
Titan stock may lose some sheen as jewellery growth slows in Q1 FY26
Titan's business update for the April-June quarter (Q1) of FY26 indicated a slowdown in growth trends. Among the country's leading lifestyle companies, Titan recorded 17 per cent year-on-year (YoY) growth in the key jewellery division, lower than recent trends of 25 per cent growth. Like-for-like (LFL) growth was in the mid double-digits. Both overall growth and LFL were lower than for peers. Buyer growth was flat YoY for jewellery. The Q1 FY25 had a low base (9 per cent YoY growth), and the next three quarters of FY25 saw much higher growth. Hence, the base effect will be unfavourable for the rest of FY26. There is higher competitive intensity, with the entry of new players like Indriya. Companies are also trying to reduce variance in gold prices and making charges versus competition, focusing on concepts like gold exchange and EMIs. Titan has high valuations, so this has led to a correction in the stock price. Gold prices are up 35 per cent YoY in Q1 FY26, with 15 per cent of that rise coming in the April-June 2025 period itself. Given high gold rates, customers are opting for lightweight, lower-karat jewellery. The studded jewellery sales ratio to overall sales declined YoY, with strong growth in coins. Plain gold grew in the mid-teens, while the studded segment grew in low double digits. The company added 19 net jewellery stores in India: three in Tanishq, seven in Mia, and nine in CaratLane. The international business grew 49 per cent YoY, driven by a near doubling of Tanishq's US business. Tanishq opened a new store in Dubai, while Titan Eye+ opened a new store in Sharjah and closed one Mia store in the Middle East. Adjusted earnings before interest and tax (EBIT) for the jewellery segment rose about 18 per cent YoY, and the standalone jewellery EBIT margin was 11.9 per cent. Titan guided for 15-20 per cent jewellery sales growth in FY26, while maintaining an EBIT margin of 11-11.5 per cent. The company stated that lab-grown diamonds (LGDs) have not had a bearing on the prices or demand for smaller natural diamonds, which contribute over 95 per cent of studded sales. Titan is undecided on whether to enter the LGD market, as consumer behaviour is uncertain and unit economics are not established. On the management side, Ajoy Chawla, currently chief executive officer (CEO) of the jewellery division, will succeed Venkat as managing director (MD) from January 2026. Standalone recurring jewellery sales (excluding bullion) grew 25 per cent YoY to ₹11,230 crore. Domestic jewellery sales grew 23.4 per cent YoY, driven by growth in gold (27 per cent YoY) and coins (64 per cent YoY). Secondary sales growth was 20 per cent YoY (lower than primary due to channel loading pre-Akshay Tritiya), aided by higher gold prices. Same-store sales growth (SSSG) was 15 per cent YoY (versus Kalyan's 21 per cent). Studded jewellery growth was 12 per cent YoY. Tanishq's primary overseas sales from 21 stores were up 87 per cent YoY to ₹390 crore. CaratLane grew 23 per cent YoY, aided by 5 per cent buyer growth. The EBIT margin stood at 7.9 per cent (up 70 bps YoY), with studded sales up 19 per cent YoY. CaratLane added 9 stores. Watches and wearables grew 19.8 per cent YoY (domestic at 17.8 per cent YoY). Four net new stores were added in Titan World and five net new stores in Helios. The EBIT margin was up 330 bps YoY to 11.8 per cent. The Eyecare division grew 15.7 per cent YoY, and EBIT margin was up 560 bps YoY to 10.4 per cent. Titan Eye+ opened 12 new stores and closed 32, resulting in net 20 closures. Taneira sales growth of 15 per cent was led by a rise in saree values. Fragrances were up 56 per cent YoY, while the women's bag segment grew 61 per cent. LFL domestic growth for Tanishq, Mia, and Zoya was in low double digits, driven by ticket size growth, while CaratLane had better growth. Following the business update on Monday, the stock fell over 6 per cent on Tuesday to ₹3,441. According to Bloomberg, 7 of the 11 analysts polled since Monday are bullish, while two each are neutral and bearish. Their average one-year target price is ₹3,768.
Time of India
30-05-2025
- Business
- Time of India
Buyers put their money on rock as gold prices peak
New Delhi: India's largest jewellery chain Tanishq's CEO Ajoy Chawla said solitaires in smaller stone sizes are seeing a 'whopping' increase in customer demand. At an overall level, studded jewellery buyers are outpacing those choosing gold. "Not now, but the last two quarters, and it carries on into this month (May). April has also been that way," Chawla said during an earnings call of parent Titan Company on May 8. He later told ET that penetration of diamond jewellery among Indian customers is currently in single digits, or at best, 10-11%. The total size of the Indian jewellery industry is about ₹5.5-₹6.4 lakh crore while the diamond industry is at ₹70,000-₹75,000 crore, Chawla said. "And, therefore, certainly we want higher growth. How much higher growth, we have not put a number to it. We have our goals. And there is an expectation that the diamond-studded jewellery market will grow at a faster rate," said Chawla. With gold prices scaling the ₹1 lakh mark, diamond-studded jewellery, particularly one carat solitaires, are being increasingly preferred in the ongoing wedding season that started in April and will run till June-end, with jewellers indicating a 20% jump in offtake compared to last summer wedding season. A carat of good-quality diamond is priced at ₹2.5-₹3.5 lakh, depending on the cut and clarity. "The purchasing power of Indians have increased, and they are now looking at diamonds for wedding purposes. India is witnessing a double-digit growth in diamond demand," said Amit Pratihari, managing director at De Beers India . Jewellery retail stores are also pushing diamond jewellery as they earn more incentives for diamond sales. Ramesh Kalyanaraman, executive director at Kalyan Jewellers , said the company's sales team has been incentivised to sell more studded jewellery. "When the gold price is high, conversion to studded jewellery becomes much easier," Kalyanaraman said. This month, overall prices of polished natural diamonds have remained stable, with a slight upward movement. "There's no sharp spike like we saw in April, but there's a tendency for prices to rise gradually," said Jignesh Mehta, managing director at Mumbai-based Divine Solitaires. "Consumers are showing continued interest in solitaires, and that's reflected in steady movement at the higher end. On the other hand, smaller goods and lower-quality diamonds are not performing as well. In fact, prices in those categories are quite flat or under pressure. So, it's clear-good quality diamonds, especially solitaires, are the ones holding value and showing upward momentum," Mehta said.
India.com
11-05-2025
- Business
- India.com
Meet Ajoy Chawla to become MD in Ratan Tata's company? as CEO, he took Titan to new heights
Ajoy Chawla is currently handling the Titan's jewelry division and has been appointed as the new Managing Director (MD) now. He will assume the new role on January 1 after the retirement of the current MD, C.K. Venkataraman, on December 31. Venkataraman is retiring as per Tata Group's age policy. Ajoy Chawla became the CEO of Titan's jewelry division in 2019. Under his leadership, the jewelry segment performance grew by 2.5x in both sales and profits. It also became a market leader in the jewelry industry. Shareholder Approval Chawla's appointment as MD is subject to shareholder approval. The company may complete this process to on board him and formalize his new role. A search for a new CEO for the jewelry division will also start soon. Current MD Venkataraman expressed confidence in Chawla's leadership, stating, 'On behalf of the Titan team, I welcome Ajoy to this role. He has a deep understanding of customers, collaborates effectively with people, and focuses on creating value. I am confident that he will take Titan to new heights.' Who Is Ajoy Chawla? Ajoy Chawla' is part of the Tata Group since 1990 through the Tata Administrative Services (TAS). In 1991, he joined Titan's finance department and later worked there for nearly twenty years in the watches division, handling sales, marketing, supply chain, and SAP operations. He also worked in the accessories and licensed brands department. Later on he became the head of Titan SBU's domestic and international operations. Between 2013 and 2019, Chawla was Titan's Chief Strategy Officer. During this time, he launched new businesses and expanded the perfumes segment. Titan Q4 Results Tata group firm Titan Company on Thursday reported a 13 per cent increase in its consolidated profit after tax at Rs 871 crore in the March quarter, driven by robust sales. The company had posted a profit after tax (PAT) of Rs 771 crore for the January-March period of FY24. Total income increased to Rs 14,049 crore for the fourth quarter as compared with Rs 11,472 crore in the year-ago period, the company said in a regulatory filing. For FY25, Titan reported a PAT of Rs 3,337 crore, a decline of 5 per cent, against Rs 3,496 crore in FY24. Total income increased to Rs 57,818 crore last fiscal from Rs 47,501 crore in FY24. (With Inputs From PTI)
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Business Standard
08-05-2025
- Business
- Business Standard
Titan Q4 net profit up 13% to Rs 871 crore on strong jewellery sales
Titan Company's net profit during the fourth quarter of financial year 2024-25 (FY25) was up 13 per cent year-on-year (Y-o-Y) to ₹871 crore on the back of strong sales. Revenue from operations grew 19.4 per cent Y-o-Y to ₹14,916 crore. Sequentially, net profit fell 16.8 per cent while revenue was down 15.9 per cent. The jewellery major's profit before interest, depreciation, and tax (PBIDT) was up 22.4 per cent Y-o-Y to ₹1,653 crore in the quarter ended March. The owner of Tanishq, Mia and Zoya saw its income from the jewellery business grow 25 per cent to ₹11,232 crore on a standalone basis compared to the corresponding quarter last year. Also, its India business grew 23 per cent in the same period, driven by a strong 30 per cent growth in gold jewellery and coins (together) and 12 per cent surge in studded jewellery, it said. 'Despite a steep increase in gold prices, the studded and gold coin segments saw buyer growths. Solitaires likewise witnessed a good rebound on the back of good buyer growth, albeit on the lower carat weights. The high gold prices, however, are continuing to weigh on consumer sentiment in the near term,' the company said in its earnings release. In the watches and wearables business, it recorded a total income of ₹1,126 crore, up 20 per cent over the corresponding quarter last year. The domestic business grew 18 per cent during the same period. The eyecare division recorded a total income growth of 16 per cent to ₹192 crore in the quarter. Emerging businesses, comprising Indian dress wear ('Taneira') and fragrances and fashion accessories ('F&FA'), recorded a total income of ₹102 crore for Q4FY25, growing 5 per cent over last year. 'FY25 was marked by multiple external events that had varying impacts on the businesses in general. Titan's businesses clocked yet another year of strong 22 per cent revenue growth. This resulted in the company crossing the milestone of over ₹50,000 crore of revenues for the full year,' C K Venkataraman, managing director (MD) of Titan said in its earnings release. He added, 'Our analog watch business continued its strong growth trajectory by product innovation-led premiumisation while moving in sync with the rising aspirations of the Indian consumer. The eye care business has returned to the double-digit growth trajectory in Q3 and Q4 of FY25 and is poised for even better growth in FY26.' He also said that within emerging businesses, fragrances has performed well in FY25 signifying growing acceptance of the SKINN brand. Its international business expansions are progressing well in North America and Gulf Cooperation Council (GCC) regions. 'As we look forward to FY26, all businesses of Titan Company are focusing on market share expansion in their respective categories and catering to the changing needs of our consumers,' Venkataraman said. Ajoy Chawla appointed MD The board of directors of Titan Company, at its meeting on Thursday, approved Ajoy Chawla as managing director (MD) from January 1, 2026, as CK Venkataraman, the current MD, will retire on December 31 this year. Chawla is currently chief executive officer (CEO) of the jewellery division. He is a mechanical engineer from VJTI Mumbai and a PGDM from IIM Calcutta. He joined the Tata Administrative Services (TAS) in 1990 and initially joined the finance department of Titan in 1991. 'Over the next two decades, he was in the watches division, and played several roles spanning commercial, sales, retailing, supply chain, SAP implementation, leading accessories and licensed brands as strategic business unit (SBU) head. He then headed the Titan SBU for domestic and international markets,' the release said. Between 2013 and 2019, Chawla was the chief strategy officer of Titan as well as head of business incubation, scaling the fragrances business and establishing the Taneira business. In October 2019, he became CEO of Titan's jewellery division. Under his leadership, the jewellery division has grown 2.5 times in sales and profits and reinforced its market and thought leadership, the release added. The formal process to induct Chawla on the board of the company and his appointment as MD of Titan will be completed in due course. It is subject to shareholder approval. The decision relating to Chawla's successor in the jewellery division will be taken subsequently.
