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.

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
Mahindra First Choice Services gets you to service your own car

MUMBAI: Mahindra First Choice Services (MFC Services), a chain of multi-brand car service workshops, and part of the $19 billion Mahindra Group, has launched a unique initiative, A Date with your Car. This one-of-a-kind experience will give car owners an opportunity to service their cars...

MAM Marketing Brands
Xiaomi partners TVF to promote latest TV range

MUMBAI: Xiaomi and The Viral Fever (TVF) have announced a strategic partnership for the recently launched Mi LED TV 4, Mi LED TV 4A 3 inches and Mi LED TV 4A 32 inches from the brand Xiaomi. Under that, TVF's library of videos and web-series will be available across all Mi TVs, bringing TVF's...

MAM Marketing Brands
Sports sponsorship in 2017 up by 14%: SportzPower-GroupM report

SportzPower, in association with GroupM's sports arm ESP Properties, has released its 2018 report on sports sponsorship in India.

MAM Marketing MAM
Mindshare elevates Prasanth Kumar, Amrita Randhawa to global roles

MUMBAI: Mindshare, the global media agency network, has announced two major leadership changes for its growth markets region.

MAM Marketing MAM
Kohli brand driving on the up

MUMBAI: From a rambunctious maverick to becoming India’s most celebrated player, Virat Kohli is the man that brands pay crores to get on board.  

MAM Marketing MAM
Big B sings acapella style for Navratna

MUMBAI: Navratna Oil, the ayurvedic therapeutic cool oil brand from the house of Emami has launched Amitabh Bachchan in a never seen avatar of an ‘acapella' singer. In a brand new music video, Big B can be seen crooning to the iconic song ‘Sar jo tera chakraye’ from the film Pyaasa in an acapella...

MAM Media and Advertising Ad Campaigns
Linc Pen encourages students taking exams

MUMBAI: Linc Pen and Plastics, one of India’s most trusted writing instruments for the last four decades with a strong presence over 50 countries, has lauded the resolution and hard work of students who are taking their board exams this year with a brand new advertising campaign, Best of Luck.

MAM Media and Advertising Ad Campaigns
JSW Steel leads fight against counterfeit steel

MUMBAI: JSW Steel, India’s leading steel producer has a new TV campaign which is a part of the company’s ongoing effort to create mass public awareness about the menace of counterfeit in the colour-coated steel products category.

MAM Media and Advertising Ad Campaigns
Gulf Oil signs Hardik Pandya as ambassador

Gulf Oil Lubricants India Limited (GOLIL), a Hinduja Group Company, has signed Indian cricketer Hardik Pandya as its brand ambassador for the company’s new business initiatives and lubricants. Pandya joins cricketing legend MS Dhoni, who has been associated with the company since 2011 as its brand...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories