Titan sees 39% jump in new customers; expects to sustain 12-13% margin
Ashok Sonthalia, CFO, Titan, on Friday, said that the company is seeing an increase in market share with 39 percent growth in new customers. He believes the company will be able to sustain its margin at 12-13 percent.
Ashok Sonthalia, CFO, Titan, on Friday, said that the company is seeing an increase in market share with 39 percent growth in new customers. He added that both the digital and omni-channels are becoming extremely important for the company.
"What gives us a sense that we are gaining market share is that our number of buyers have increased handsomely and within that, the new customers have increased higher than the number of buyers – 32 percent customer growth and 39-40 percent new customer growth. So that gives us confidence that we are gaining market share," he said.
"Digital and omni-channels are becoming hugely important and in a way, is supplementing the whole physical retail network. All are working with each other and customer is also becoming very comfortable with each of them - even high value item like jewellery," he added.
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Sonthalia believes margin will remain at 12-13 percent.
"We have been talking about 12-13 percent margin range and then we are operating at the higher end and slightly above that; 13 percent seems to be a decent margin to gun for with a very good growth," Sonthalia said.
Titan Company Ltd recently came out with its Q3 earnings. The company reported a 91 percent jump in consolidated net profit at Rs 1,012 crore for the third quarter ended December 2021, driven by strong demand across its consumer businesses. The company had posted a consolidated net profit of Rs 530 crore in the same period last fiscal. Meanwhile its consolidated total income during the quarter under review stood at Rs 10,094 crore, as compared to Rs 7,659 crore in the year-ago period.
On its recent performance, Sonthalia affirmed that Q3 was indeed a good quarter, with an overall growth of 36 percent. However, he mentioned that coming out of Q3, January has seen a slight dip but he expects the balance months of Q4 to be normal.
He said, "Q3 has been quite well for us – 36 percent overall growth and profitability-wise, almost 100 percent growth. January has been slightly slower compared to what we had thought while coming out of Q3 but it appears that things are getting normalized very quickly."
"Almost all the restrictions on weekends and the store opening etc., have lifted across the country. So we believe February and March should be normal. The trend is continuing of formalization of the economy - people trying to go with the trusted brands etc., and Titan is of course a beneficiary," he added.
Also Read: Tata Mutual Fund: Going to be year of cyclicals; uptick in realty activity benefits many sectors
Watch the video for the full interview.
(Edited by : Dipikka Ghosh)
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