Top Indian Companies: Titan Company Ltd

Titan Company Limited is an Indian luxury products company headquartered in the city of Bangalore, India.

It mainly manufactures fashion accessories such as jewellery, watches and eyewear.

Part of the Tata Group and started as a joint venture with TIDCO, the company has its corporate headquarters in Electronic City, Bangalore, and registered office in Hosur, Tamil Nadu.

Titan commenced operations in 1984 under the name Titan Watches Limited. In 1994, Titan diversified into jewellery with Tanishq and subsequently into eyewear with Titan Eyeplus. In 2005, it launched its youth fashion accessories brand Fastrack.

The company is the largest branded jewellery maker in India, with more than 80 percent of its total revenues coming from the jewellery segment.[10] As of 2019, it is also the fifth-largest watch manufacturer in the world. It is Nifty 50 company with a weightage of 1.35% on the index.

Brief History

Titan Company Limited was inaugurated on 26 July 1984 under the name Titan Watches Limited in Chennai. In 1989, a satellite case plant was set up in Dehradun, Uttarakhand at present with a manufacturing capacity of 500,000 watch cases annually.

In September 1993, the company changed its name to Titan Industries Ltd. as it ventured into other range of products other than watches. In 1994, Titan launched its jewellery brand Tanishq.

In 1998, the company launched its watch & accessories brand, Fastrack, targeted at a younger audience in a bid to compete with Timex.

In 2001, Titan launched kids’ watches brand, Dash. The brand saw poor performance and was discontinued in 2003. With the objective to become a fashion brand, Fastrack launched sunglasses in the 2005 and launched bags, belts and wallets in 2009.

Titan acquired Swiss watch maker Favre-Leuba in 2011 to enter the European market. In 2013, Titan entered the fragrances segment with the brand Skinn and later that year, it ventured into the helmets category under its brand Fastrack.

Taneira is an ethnic wear brand from Titan that retails hand-woven sarees from different weaving clusters of India. The first retail store was opened in Bengaluru in 2017 with more stores followed in New Delhi and Hyderabad.

The company had a 7.4% market share in the wearable devices market as of 2018.

Products

Watches

Eyewear

Jewellery

Perfume

Shareholding Pattern.

Holder's Name No of Shares % Share Holding

No of Shares 887786160 100%

Promoters 469601920 52.9%

Foreign Institutions 164694132 18.55%

Banks Mutual Funds 39522882 4.45%

Central Govt 1440658 0.16%

Others 22669040 2.55%

General Public 137913582 15.53%

Financial Institutions 51943946 5.85%

FY2023 Q4 and Full Year Results

Tata group firm Titan Company Ltd on Wednesday reported a 40 per cent rise in consolidated net profit at Rs 736 crore in the fourth quarter ended March 2023.

The company had posted a consolidated net profit of Rs.527 crore in the same quarter in 2021-22, Titan Company Ltd said in a regulatory filing.

Consolidated total income during the quarter under review stood at Rs.10,474 crore as compared to Rs 7,872 crore in the year-ago period, it added.

Total expenses were higher at Rs.9,486 crore, from Rs.7,165 crore in the fourth quarter last fiscal, the company said.

During the March quarter, the jewellery segment had a total income of Rs.7,576 crore, up 24 per cent, compared to Q4FY22, with India business growing 21 per cent.

Watches and wearables business recorded a total income of Rs 871 crore, up 40 per cent, compared to Q4FY22 on the back of a strong growth in analog watches segment and multi-fold increase in wearables, the company said.

The eyecare vertical had a total income of Rs 165 crore, a growth of 23 per cent compared to the year-ago period, it added.

For the fiscal ended March 31, 2023, Titan said its consolidated net profit rose 49 per cent at Rs 3,274 crore as against Rs 2,198 crore in 2021-22.

Consolidated total income for FY23 stood at Rs 40,883 crore over Rs 29,033 crore in FY22.

"The year gone has witnessed several firsts in the history of Titan. The jewellery, watches and wearables, and eyecare achieved landmark milestones of Rs 30,000 crore, Rs 5,000 crore and Rs 1,000 crore of annual consumer retail sales, respectively, for the first time in their retail journeys," Titan Managing Director CK Venkataraman said.

The company said its board of directors at its meeting held on Wednesday has recommended a dividend of Rs 10 per equity share for the year ended March 31, 2023.

Brokerage Outlook

Operating performance continue to be better than expected. Titan’s strategy revolves around serving millennials, meeting their aspirational demand with introduction of new designs and channels, and has paid richly. Further industry formalization showing up in market share gains.

Centrum raise earnings for FY22E/FY23E by 13.1%/12.8% and retain BUY, with a revised DCF-based TP Rs2,898 (implying 63.7x FY24E EPS).

Esg and Sustainability

At Titan, our global team is dedicated to continually working to advance our practices, processes, and polices related to environmental, social, and governance matters.

As part of our commitment to the environment, Titan has Environmental Management Systems in place which includes environmental monitoring across our global operations.