Brands
Titan q-o-q advertising spend up 13.6 per cent in Q1-2015
BENGALURU: Titan Company Limited (Titan) increased its advertising spend (ASP) in Q1-2015 (current quarter) at Rs 99.25 crore (3.4 per cent of Total Income from Operations or TIO) by 13.6 per cent as compared to the Rs 87.37 crore (3.1 per cent of TIO) in the immediate trailing quarter,but was 5.2 per cent lower than the Rs 104.67 crore (3.4 per cent of YIO) in Q1-2013.
Note : 100,00,000 = 100 lakh = 10 million = 1 crore
Titan has three revenue segments – watches having five major brands –Titan, Xylus, Nebula, Sonata and Fastrack; Jewellery (the largest segment in terms of revenue and consequently profits) with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Other’ such as eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.
While the company’s ASP in terms of absolute rupee value shows an icreasing linear trend, in terms of percentage of TIO, the trend is downwards across 10 quarters starting with Q4-2012 until the current quarter. Refer to figure 1 below.
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The company has seen a drop in PAT on both y-o-y and q-o-q basis. PAT in Q1-2015 at Rs 177.27 crore (6.13 per cent of Total Income from operations or TIO), which was 14.1 per cent lower than the PAT of Rs 206.44 crore (4.8 per cent of TIO) in the immediate trailing quarter and 2.9 per cent lower than the Rs 182.48 crore (5.9 per cent of TIO) reported for the corrseponding quarter of last year.
The company has seen a 3.1 per cent increase in its TIO in Q1-2015 at Rs 2891.44 crore versus Rs 2903.38 crore in Q4-2014 and 7 per cent lower than the Rs 3107.67 crore in Q1-2014.
Titan managing director Bhaskar Bhat explains thelower y-o-y TIO, “The consumer discretionary spend in the current quarter was far more stable than what we witnessed in the past few quarters. With stability in the policitcal environment, the market mood has been positive. However, due to extraordinary first quarter witnessed by jewellery business last year, the topline growth in this quarter was tough. Regulatory pressures faced by jewellery business have amplified the challenge.”
Titan, in its earnings press release, says that it has put together exciting plans to stimulate demand for all its product categories through innovative advertising campaigns and new product launches.
As per figure 2 below, Titan’s TIO shows an upward linear trend across the 10 quarters under consideration, as does PAT in absolute rupee terms. In terms of PAT as percantage iof TIO, the linear trend is almost flat, with a slight dip.
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The company says that its watches business witnessed a growth of 10.4 per cent from Rs 389.68 crore in the year ago quarter to Rs 439.95 crore in Q1-2015. Its jewellery business, which contributes majorly to TIO, declined 10.1 per cent to Rs 2325.27 crore in the current quarter versus Rs 2586.61 crore in Q1-2014. The company’s other businesses –Eyewear, Precision Engineering and accessories grew 3.8 per cent 123.18 crore to Rs 127.83 crore this year.
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Brands
Axis Bank named Official Banking Partner of DP World PGTI
Partnership supports all tournaments this season to grow professional golf in India.
MUMBAI: Axis Bank just teed up a hole-in-one partnership because when a bank sponsors golf’s biggest swing in India, even the fairways feel more financially secure. Axis Bank has been appointed Official Banking Partner of the DP World Professional Golf Tour of India (DP World PGTI), strengthening its commitment to sporting excellence and community engagement while backing the growth of professional golf across the country.
Under the partnership, Axis Bank will support all DP World PGTI tournaments this season, contributing to talent development, enhanced tournament experiences and wider fan engagement. The collaboration aligns the bank’s values of precision, discipline and trust with the Tour’s focus on performance and opportunity.
Axis Bank executive director Munish Sharda said, “We are pleased to partner with DP World PGTI as its Official Banking Partner. Golf embodies precision, discipline, and a pursuit of excellence qualities that strongly reflect who we are at Axis Bank. This association also strengthens our engagement with India’s growing premium customer segments, where the sport has a deep and enduring connect.”
Professional Golf Tour of India president Kapil Dev said, “We are extremely pleased to welcome Axis Bank as a Tour Partner of the DP World Professional Golf Tour of India. Partnerships of this stature play a vital role in strengthening the foundation of the Tour, enhancing opportunities for our players, and expanding the sport’s reach across the country.”
Professional Golf Tour of India CEO Amandeep Johl added, “Axis Bank’s strong legacy of excellence, innovation, and nationwide reach aligns perfectly with DP World PGTI’s goal to elevate professional golf in India and provide greater opportunities for our players.”
In a sport where every stroke counts and every partnership drives distance, Axis Bank isn’t just backing golfers, it’s investing in the fairway to future, turning India’s greens into a stage where precision meets passion and every drive has the power to inspire.
