In spite of a stagnating industry, Titan Jewellers maintained a 20 per cent growth in the current fiscal year. India’s largest jeweller revealed that the last fiscal was not so great but thanks to consolidation from structural changes, things have begun to change.


"We have seen a visible slowdown in the jewellery industry over the last two years. We know that most jewellers are in distress, which is a positive for organised player like us. Market share gain has been our story for the last two years,” said Subbu Subramaniam, CFO, Titan. “The market is so large, and we are only 5 per cent.”


Subramaniam expects operating leverage benefits to kick in as they have added a total of 115 stores with 130000 square feet in FY 19. Analysts expect a 34 per cent earnings growth for FY 20. Due to higher sales from wedding jewellery, net has increased from 23 per cent to 26 per cent in FY 19. Since jewellery made for wedding yields higher profit margins, the total profit was pegged at 89 per cent and 81 per cent of revenues.


In the latest March quarter, Titan did sales of Rs 4,823 crore, 19 per cent higher year-on-year, and a net profit of Rs 353 crore, up 12 per cent. Profitability dropped due to inventory impact and provisions of Rs 145 crore made for investments in IL&FS group. The inventory hit may get adjusted in the coming quarters. Regarding IL&FS, the management has made the whole provision and if it receives any payment from IL&FS, it will be a gain.