Brands
Q2-17: Ad exp up, gold hedging helps Titan’s numbers
BENGALURU: The Titan Company Limited (Titan) which believes in delivering value through brands had higher advertising spends (ad spends) in the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the corresponding year ago (y-o-y) quarter Q2-16. The company’s ad expense in the current quarter was up 9.4 percent y-o-y at Rs 98.08 crore as compared to the Rs 89.64 crore in Q2-16.
The company’s bottomline (Profit after tax- PAT) increased 23.5 percent y-o-y to Rs 180.76 crore in Q2-17 as compared to Rs 146.35 crore. Total comprehensive income (TCI) in the current quarter was increasedfurther by a gain of Rs 100.26 crore due hedging instruments for gold price hedging, the unutilized portion of which Titan recognised as an expense head in its profit and loss statement. TCI in Q2-17 was 89.7 percent higher y-o-y at Rs 269.37 crore as compared to Rs 141.97 crore in Q2-16.
Segment Performance
Titan has 4 revenue segments – watches having five majorwatch brands –Titan, Xylus, Nebula, Sonata, Fastrack, and three point of sales brands – World of Titan, Helios and Fastrack; Jewellery with Tanishq, Zoya, Gold Plus from Tata and sub brand Mia; Eyewear under the Titan EYE+, Fastrack, Glares and Cabana brandsand ‘Other’ such as precision engineering among others.
Titan’s Jewellery business is its major revenue generating stream that contributes more than70 percent to the company’s revenue. In the current quarter, jewellery business revenue was almost flat (grew 0.2 percent, grew by Rs 4.79 crore) y-o-y to Rs 1,987.51 crore (74.3 percent of net sales) from Rs 1982.72 crore (73.9 percent of net sales). The company says that performance of the diamond studded jewellery segment was much better than plain gold segment.
The company’s Watches division is the next major division in terms of revenue contribution. Revenues from watches declined5.2 percent (reduced by Rs 28.75 crore) y-o-y to Rs 52.369 crore (19.6 percent net sales) from Rs 552.44 crore (20.6 percent net sales). Titan explains the reason for the decline in a release that says the Watches division continued to exhibit a decent performance in the domestic market but the overall business declined due to lack of growth in some of its international markets as well as its service business which went through re-structuring.
Titan’s Eyewear business which contributes about 3 to 4 percent to the company’s revenue, reported 6.6 percent (increased by Rs5.86 crore) y-o-y growth in revenue to Rs95.19 crore (3.6 percent of TIO) from Rs 89.33 crore (3.3 percent of TIO).
Titan’s TIO in the current quarter was also flat (declined 0.2percent, reduced by Rs5.57 crore) y-o-y to Rs 2,675.77 crore from Rs 2,681.34 crore.
Advertisement spend trends
Please refer to fig A below for Titan’s Ad expenses over a nineteen quarter period starting Q4-12 (quarter ended March 31, 2012) until the current quarter. It may be noted that Titan has started reporting its numbers as per the Indian Accounting System (IND AS) since Q1-17 and hence the numbers in the charts may not be accurate – this report and the charts are meant as an approximate representation of the company’s numbers.
During the nineteen quarter period under consideration in this report, Titan’s Ad spends were the highest in Q1-16, both in absolute rupees and in terms of percentage of TIO. Lowest Ad spends during the same period in absolute rupees and in terms of percentage of TIO waslowest in Q4-13 at Rs 66.63 crore and 2.5 percent of TIO respectively.
Also, during the nineteen quarter period under consideration in this report, Titan’s ad spends show a linear increasing trend in terms of absolute rupees as indicated by the broken blue trend line, while ad spends in terms of percentage of TIO show a slow linear decline as indicated by the broken maroon line in Fig A.
Company Speak
Titan Managing Director Bhaskar Bhat said, “This was an extremely good quarter for the Company with respect to profits. All businesses of the company recorded profits in the quarter. The Jewellery business had an extremely good studded jewellery activation and the Watches business launched its second smart watch, Juxt Pro. All our retail channels grew. The festive season has commenced very well. For the Dussehra to Diwali festive period, Tanishq registered a growth of 39 percent over last year. In watches, for the same period, our World of Titan stores grew by 14 percent and Helios stores by 11 percent in retail sales.”
Note:(1)Titan has started reporting its numbers as per the Indian Accounting System (IND AS) since Q1-17 and hence the numbers in the charts may not be accurate – this report and the charts are meant as an approximate representation of the company’s numbers.
(2) The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
(a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
(b) 10,000 lakh = 100 crore = 1 arab = 1 billion.
Brands
Akoirah rolls out Diamond Draw campaign across cities for Akshaya Tritiya
Festive offer blends discounts with prize draws to boost jewellery shopping buzz
MUMBAI: Akoirah has launched a festive ‘Diamond Draw’ campaign across Mumbai, Navi Mumbai and Pune, aiming to add a dash of excitement to jewellery shopping ahead of Akshaya Tritiya.
Running from April 6 to 19, the limited-period initiative offers customers a chance to win diamond jewellery worth Rs 1.5 lakh with every eligible purchase. Winners will be announced in-store, with one winner selected per outlet, turning a traditional shopping ritual into a more interactive experience.
Alongside the draw, the brand is also offering a flat 20 per cent discount on diamond value during the campaign period, positioning the offer as both celebratory and value-driven.
The move reflects a broader shift in festive retail strategies, where brands are looking beyond straightforward discounts to create more engaging, experience-led campaigns. By linking each purchase to a unique entry in a store-specific draw, the campaign aims to keep participation simple while ensuring fairness across locations.
Speaking on the initiative, Akoirah founder Namita Kothari said the idea was to make festive buying more meaningful and rewarding. She noted that while Akshaya Tritiya remains deeply rooted in tradition, customers today are increasingly seeking memorable shopping experiences alongside value.
The campaign also taps into evolving consumer preferences, with buyers leaning towards lighter, design-led jewellery rather than purely weight-based purchases. This shift has encouraged brands to combine product appeal with experiential elements to drive footfall and engagement.
Backed by digital promotions and in-store activations, the Diamond Draw campaign is expected to build momentum during the festive window. As competition intensifies around key buying occasions, initiatives like these underline how jewellery brands are reimagining the retail experience to keep customers coming back for more than just the sparkle.
