Titan · tone and specificity signals across the available quarters.
Language signals
We have chosen to invest in growth as a strategy. We continue to do so very aggressively, because we are very clear that the market share gain opportunity is far, far higher than worrying about a particular quarter here and there.
Revenue growth will be likely to be better than the earning growth in this financial year.
12-13% is still in our view is deliverable, and we maintain that.
If you take a photograph, it look like a Titan team meet.
We are a hunting ground. We are losing people.
The macro, the global macro is pushing the gold rate up despite the customs duty, you know, pulling it down, and therefore, in a matter of just a few days, the difference is gone almost.
We are not constraining growth by way of trying to somehow keep a high margin. We have been very competitive and aggressive when it comes to gold rates.
The narrative is far larger than the reality. The reality is that the lab-grown market estimated by us is less than 2% of the total diamond studded market as we speak.
I think it's better to look at it over a slightly larger number of quarters.
We are quite excited to be now in the next wave of growth, CaratLane, and given the profile of Indian consumers, their digitalization, their accessorization, their desiring to buy the right kind of lifestyle products, CaratLane is positioned exceedingly well to capitalize on that opportunity.
Actually, we are benefiting when competition is putting stores next to us, as opposed to worrying. In fact, now more and more people I meet on the ground are saying that, 'Let those brands come and put stores next to us, actually it will help us.'
Full year, I think we are being consistent for last couple of years. 12%-13% is a good margin band for jewellery division, to aspire for and deliver for.
We are a category expert. We create brands, we create EBOs, and we play the game very differently.
The moment lab-grown jewelry goes beyond 1 lakh, the customer interest significantly falls.
We have not been impacted by whatever competitors have offered. They have continued to offer historically or some more aggressively.
We believe exchange is a strategic customer acquisition and trust-building tool. Therefore, I would request we don't see it as an offer.
The buyer growth challenge is not going to go away that easily, notwithstanding how the industry actually creates new innovations.
Really, it's becoming increasingly difficult to kind of project gold price trajectory and consequently its impact on margin.
Our overall confidence is very high, and we continue to be bullish on the prospects for all the businesses.
We are still confident of the 12%-13% range.
Our FY 2027 guidance, which we presented in our Investor Day, remains same. We are not at all worried about that.
We can expect to be anchored around the current levels of EBIT margins, and for an annualized basis between 11% - 11.5% is what I think we are likely to realistically achieve.
In our premium brands like Edge, Nebula, Xylys, we have seen more than 50% growth. But I'm also happy to note that we are seeing very good growth in brands like Fastrack and Sonata, which are in the more affordable space.
To me, 11 is a little bit of a threshold that is going below 11 would not feel right to me unless it's very extreme situations.
It's been a great quarter. Certainly a festive quarter on a high base. We are delighted to have seen this kind of uptick in demand.
The real difference, what we have seen in January versus the months leading up, is that the gold rate has been volatile. ... It's too early to call out or give you a guidance.
I urge you to start looking at consolidated performance as well, because that's going to be increasingly important.
We have made clear choices of pushing for growth and aggressive growth. And if margins do take a hit, we are willing to do that.
I think we are entering a regime where everybody is going to intensely defend their turf. And therefore, in our mind, we assume that competitive intensity is going to continue to be the way it is.
We are keeping our eyes and ears open. We are, in fact, doing active tracks. We are in touch with consumers. And we are trying to see, if any, where are the early adopters emerging from.
We would welcome any gold price correction because a lot more customers will come into the market.
Our priority to continue to grow top line and acquire customers is the highest. Sometimes we may be willing to invest some of that margin into growth.
We are still seeing customers are a little unsure. We need to be clear what is the value proposition we need to offer to the customer.
We have ended the year with a superlative quarter for topline growth, perhaps our best ever in the recent past.
If gold remains at the current rate, it is sustainable. But if gold continues to go up, we may have to keep making effort... beyond a point there will be impact on margin.
Our sense is that perhaps we have gained about 50 to 60 bips is our sense on FI26 versus FI25.