MAM

Titan q-o-q advertising spend up 13.6 per cent in Q1-2015

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2014/08/26/titan_logo.jpg?itok=flQjMp-G

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.

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.

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.

Click here to read the standalone unaudited/audited result

Click here to read the press release

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/18/mccafe.jpg?itok=N2RvyH_X
'McCafé for everything' digital campaign launched

McDonald’s India has rolled out a thematic, digital-led campaign ‘There’s A McCafé For That’. Whatever the feeling might be, or whatever may the reason to go out and have a beverage, there’s always McCafé for it.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/18/vi.jpg?itok=x_hqfALu
Vizeum wins media mandate for Bauli India

Vizeum, the full-service media agency from Dentsu Aegis Network, has bagged the media mandate for Bauli India Bakes & Sweets, following a multi-agency pitch.

MAM Media and Advertising Account
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/17/digital-display.jpg?itok=_FAr0SjC
36% more active digital display ads this month

The whole world is going digital and so is digital advertising with advertisers vying hard to capture quality publishers. In turn, there are a lot more publishers competing for marketers too. And both sides are constantly looking at new tech and services to grab a larger piece of pie from the...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/17/Anshuman_Chakravarty-Mayur_Hola.jpg?itok=jyOnCxRL
Dhoni narrates old bat & new Orient LED story

MUMBAI: Orient Electric, a part of the USD 1.6-billion CK Birla group, has launched an integrated advertising campaign with its long-standing brand ambassador MS Dhoni for its range of LED Battens.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/17/HeroSalutes.jpg?itok=inQX9suG
I-Day: Hero salutes true heroes behind heroes

MUMBAI: Hero MotoCorp has rolled out its Independence Day campaign with its third edition of #HeroSalutes. The campaign has been conceptualised by Law & Kenneth Saatchi & Saatchi and has been on-air from 11 August.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/mullen.jpg?itok=lgYKe55j
GolinOpinion appoints Asheesh Malhotra as ED

Asheesh Malhotra has parted ways with advertising to pursue a career shift. He leaves his role as president at Bates CHI & Partners to join GolinOpinion, the PR division of PointNine Lintas, as the executive director. This marks a significant shift for Malhotra, who’s spent his entire career in...

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/complan.jpg?itok=i-mjTQ4S
Complan goes for brand makeover, focuses on WB & TN

Complan, a health drink brand, is going through a complete brand makeover and has adopted a new brand philosophy – Don’t Just Be Tall, Stand Tall. Complan has lined up a series of media innovations to reintroduce the brand in the market.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/asianpaints.jpg?itok=X1z0gHeL
Asian Paints adhesives TVC - a humourous take on 'joints'

Have you met Vicky Contractor? It's time to tune in to the engaging digital film that presents Asian Paints' range of adhesives catering to carpenters and contractors.

MAM Media and Advertising Ad Campaigns
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/08/16/himlayan_0.jpg?itok=VMea8ZCP
Tata's 'Himalayan' mineral water enters U.S.

Tata Global Beverages’ natural mineral water brand Himalayan has entered the U.S market.

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories