Q1 2027 Titan Co Ltd Earnings Call

August 7, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Titan Company Limited's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 2: Ladies and gentlemen, good day and welcome to the Titan Company Limited's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ajoy Chawla, Managing Director, Titan Company Limited. Thank you, over to you, Mr. Chawla.

Operator: Ladies and gentlemen, good day and welcome to the Titan Company Limited's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ajoy Chawla, Managing Director, Titan Company Limited. Thank you, over to you, Mr. Chawla.

Speaker #1: Should we need assistance during the conference call, please signal an operator by pressing star and then zero on your touchdown phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Ajoy Chawla, Managing Director, Titan Company Limited. Thank you, and over to you, Mr. Chawla.

Speaker #2: Good evening, friends. Welcome to the earnings call for Quarter 1 of FY27. It's been another fantastic quarter, and I must say, this quarter has been even better than the previous quarters.

Ajoy Chawla: Good evening, friends. Welcome to the earnings call of Q1 for FY27. It's been another fantastic quarter. I must say this quarter has been even better than the previous quarters. We've seen all-round growth across all our businesses, all our brands, subsidiaries, and we've also seen a good volume growth and a buyer growth that has come in. All in all, very positive and certainly disciplined execution as well, which has driven this as well as the results. I now hand over this to our CFO, Ashok, who has a few opening remarks before we open it up for some questions. Thank you.

Ajoy Chawla: Good evening, friends. Welcome to the earnings call of Q1 for FY27. It's been another fantastic quarter. I must say this quarter has been even better than the previous quarters. We've seen all-round growth across all our businesses and all our brands and subsidiaries, and we've also seen a good volume growth and a buyer growth that has come in. All in all, very positive and certainly disciplined execution as well, which has driven this as well as the results. I now hand over this to our CFO, Ashok, who has a few opening remarks before we open it up for some questions. Thank you.

Speaker #2: We've seen all-round growth across all our businesses, all our brands, subsidiaries, and we've also seen a good volume growth and a buyer growth that has come in.

Speaker #2: So, all in all, very positive—and certainly, disciplined execution as well, which has driven this, as well as the results. I will now hand this over to our CFO, Ashok, who has a few opening remarks before we open to questions.

Speaker #2: Thank you.

Ashok Sonthalia: Hello. Good evening, everyone. We are very pleased to report another quarter of strong growth across our portfolio, as Ajoy said. We must also note that the operating environment was not so favorable. Still things have turned out very well to us. Before we get into Q&A, I would like to highlight a few aspects that will help in interpreting the numbers and quality of results for you. There might be common questions, so I'm addressing it upfront. We have, during this quarter, gains on account of custom duty rate increase from 6% to 15%. These gains will be realized as the inventory gets sold over the next couple of quarters. In this quarter, we had overall, at a consolidated level, realization of INR 407 crore. INR 386 crore was in Tanishq, Mia, Zoya portfolio, and INR 21 crore was in CaratLane.

Speaker #3: Hello. good evening, everyone. we are very pleased to report another quarter of strong growth across our portfolio has Ajoy said. and, and we must also note that operating environment was not so favorable, but still, things have turned out very well for us.

Speaker #3: before we get into Q&A, I would like to highlight a few aspects that will help in interpreting the numbers and quality of results for you, and there might be common questions, so I'm addressing it upfront.

Speaker #3: we have in during this quarter, gains on account of customs duty rate increase, from 6% to 15%. while these gains will be realized as the inventory gets sold over the next couple of quarters, but in this quarter, we had a overall at a consolidated level, realization of 407 crore.

Speaker #3: 386 crore was in Spanish Near portfolio, and 21 crore was in CaratLane. The other significant item during this quarter was that, as southern and sharp customs duty changed and many other steps were being taken, the market went into quite a, I would say, volatility where international prices and domestic prices were at a divergence at many times.

Ashok Sonthalia: The other significant item during this quarter was that as sudden and sharp custom duty changed and many other steps are being taken, the market went into quite a, I would say, volatility, where international prices and domestic prices were at a divergence at many times. We were also advancing our gold procurements to secure that we are fully equipped to meet our festive demand and production without any disruptions. On account of those price divergence, we have an accounting MTM in the inventory, which caused 75 to 80 basis points Jewellery Division EBIT upward. Jewellery Division has the benefit of that. We believe that these are likely to reverse in the coming quarters. The normalized margin considering both custom duty gain and MTM gain, the normalized EBIT margin for Tanishq, Mia, Zoya business would be 10.9%, normal numbers for this quarter.

Speaker #3: And we were also advancing our gold procurement, to ensure that we are fully, fully equipped to meet our festive demand and production without any disruptions.

Speaker #3: So, on account of those price divergences, we have an accounting MTM in the inventory, which has caused a 75 to 80 basis point movement in the jewelry division a bit upward.

Speaker #3: So jewelry division has the benefit of that. And we believe that these are likely to reverse in the coming quarters. so, so the normalized margin considering both customs duty gain and MTM gain, the normalized a bit margin for tennis near where business would be 10.9%.

Speaker #3: Normal number for this quarter. The other important change which I wanted to tell you is that we have revived the classification of our jewelry product mix.

Ashok Sonthalia: The other important change which I wanted to tell you, that we have revised the classification of our jewellery product mix. You remember in the last quarters we have talked about colored stones jewellery, and we have been progressing on that. Colored stones jewellery, which was earlier clubbed under the studded category, we have reclassified that into the gold jewellery, so that studded reflects to more diamond jewellery and not any other colored stone or antique jewellery, et cetera. To that extent, you will see some change in the number, and to facilitate, I think we have shared the declassified numbers for two years periods also, so that compatibility is not lost. Last point regarding watches business, that while reported EBIT profitability will look muted compared to revenue growth in Q2. Every Q1, we run standard costing revaluation of inventory of watches.

Speaker #3: You remember in the last quarters we have talked about color stone jewelry. and we, we have been progressing on was earlier clubbed under the studded category, we have reclassified that into the gold jewelry.

Speaker #3: so that studded reflects more diamond jewelry and not any other color stone or polki jewelry, etc. So to that extent, you will see some, change in the number and to facilitate I think we have shared the reclassified number for previous periods also.

Speaker #3: So that comparability is not lost. And last point regarding watches business, that while reported a bit profitability will look muted compared to revenue growth in the quarter two, but every quarter one we run standard costing revaluation of inventory of watches and last year we had called out if you refer that earning that about 50 crore was the benefit to watch division.

Ashok Sonthalia: Last year we had called out, if you recall that earning that about INR 50 crore was the benefit to Watches Division. This quarter that benefit was far less. If you normalize for both in size, then last Q1 FY26 Watches EBIT margin was 18.6% compared to 17.8% normalized margin for this quarter. These were some of the points which I thought I'll say upfront, and now we will open the floor for question and answers.

Speaker #3: This quarter that benefit was far less. So if you normalize for both these sides, then last quarter one FY26 watch a bit margin was 18.6% compared to 17.8% normalized margin for this quarter.

Speaker #3: So these were some of the points which I thought I'll, say upfront, and now we will open to open the floor for question and answers.

Speaker #1: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchdown phone.

Operator 2: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Videesha Sheth with Ambit Capital. Please go ahead.

Operator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Videesha Sheth with Ambit Capital. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star, then two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Vidisha Sheth with Ambit Capital.

Speaker #1: Please go ahead.

Speaker #4: Yes. Hi. my first question was pertaining to the jewelry segment. now in one two even you mentioned that growth to some extent would have been impacted, because of government interventions or even events like Adik Mas.

Videesha Sheth: Yes. Hi. My first question was pertaining to the jewelry segment. Now, in Q1 even you mentioned that growth to some extent would have been impacted because of government interventions or even events like Adhik Mas. Based on your observation, have you seen that the postponed demand has come back in the quarter till date? Accordingly, can we expect growth momentum to further improve in the ongoing quarter? Any particular change in consumer behavior also, if you'd like to share.

Speaker #4: So based on your observation, have you seen, that the postponed demand has come back in the quarter till date? And accordingly, can we expect growth momentum to further improve in the ongoing quarter?

Speaker #4: And any particular change in consumer behavior also, if you'd, like to share?

Speaker #2: Yeah. Thanks. thanks for that question. some key dates, for everyone's to refresh everyone's memory. it's May 10th was a certain callout by the PM.

Ashok Sonthalia: Thanks for that question. Some key dates to refresh everyone's memory. 10 May was a certain call-out by the PM. 13 May was the customs duty change, we also had Adhik Mas also begin from 17 May. There was obviously an overlap of many of these developments. As a consequence, we did see a softness in consumer sentiment for about three weeks time till the end of May. By the beginning of June, things started picking up. Weddings also restarted post the end of Adhik Mas. We believe that it was a deferment we saw things pick up in June. What we lost in May, perhaps we gained back in the month of June.

Speaker #2: May 13th was the customs duty change. And we also had Adik Mas, also begin from May 17th. So there was obviously an overlap of, many of these developments.

Speaker #2: As a consequence, we did see a softness in consumer sentiment for about three weeks, until the end of May. But by the beginning of June, things started picking up.

Speaker #2: Weddings also restarted post the end of Adik Mas. So we believe that it was a deferment, and we saw things pick up in June.

Speaker #2: what we lost in May perhaps we gained back in the month of June.

Speaker #4: Sure. And any, any changes in consumer behavior, whether it's, the sub 1 lakh category, coming back or sustainance of standard growth that you particularly want to call out?

Videesha Sheth: Sure. Any changes in consumer behavior, whether it's the Shravan category coming back or sustenance of studded growth that you particularly want to call out?

Speaker #2: No. As you're aware, we, you know, we, have we began seeing a resurgence of studded in quarter four of last year. And we are seeing that continue to play out in quarter one.

Ashok Sonthalia: No, as you're aware, we began seeing a resurgence of studded in Q4 of last year, we are seeing that continue to play out in Q1.

Ashok Sonthalia: In a sense, the momentum that we had in Q4 continued during Akshaya Tritiya. There was a brief lull, perhaps, in May, but it's kind of come back in the month of June.

Speaker #2: and, in a sense, it's, you know, the momentum that we had in quarter four continued during Akshay Tritiya. There was a brief lull perhaps, in May, but it's kind of come back in the month of June.

Ashok Sonthalia: In a sense, the momentum that we had in Q4 continued during Akshaya Tritiya. There was a brief lull, perhaps, in May, but it's kind of come back in the month of June.

Speaker #4: Sure. Just one more question before I get back in the queue. In, context of sustainance of the improvement we're seeing in buyer growth, even studded growth seems to have revised quite well.

Videesha Sheth: Sure. Just one more question before I get back in the queue. In context of sustenance of the improvements we're seeing in buyer growth, even studded growth seems to have revived quite well. Probably even the zero reduction on the old gold policy will start getting high like September onwards. Would you look to revisit the EBIT growth or margin guidance for the jewelry segment given during the investor meet for the next one, two years at least?

Speaker #4: probably even the zero, reduction on the old gold policy will start getting analyzed September onwards. Would you look to revisit the a bit growth or margin guidance for the jewelry segment, given during the investment for the next one to years at least?

Speaker #2: do you want do you want to give a guidance on the a bit growth or margin is what she's asking?

[Company Representative] (Titan Company): Do you want to give a guidance on the EBIT growth or margin, is what she's asking.

Ajoy Chawla: Do you want to give guidance on the EBIT growth or margin, is what she's asking.

Speaker #3: no. We are not giving any guidance at this point of time. In the investor thing and prior, we have said that more of 11% being the center of gravity for jewelry business margin, we would be around that plus minus something can happen.

Ashok Sonthalia: No, we are not giving any guidance at this point of time. In the investor thing and prior, we have said that more of 11% being the center of gravity for jewelry business margin, we would be around that, plus, minus, something can happen. Many moving parts. Market is behaving in a particular manner. Gold price continues to remain on a very uncertain trajectory. You would have seen softening, then all of a sudden in a day, $100, $200 going up and down. Given these circumstances, we will stick with our previous guidance. We are not changing it.

Speaker #3: Similarly, moving parts, market is, behaving in a particular manner. Gold price continue to remain on a very uncertain trajectory. you would have seen softening in all of a sudden in a day 100, 200 dollar going up and down.

Speaker #3: So given this circumstances, we will stick with our previous guidance. We are not changing it.

Speaker #4: Sure. And, and get back into business again.

Videesha Sheth: Sure. I'll get back in the queue. Thanks again.

Speaker #1: Thank you. Your next question comes from the line of Devanshu Bansal with MK Global. Please go ahead.

[Company Representative] (Titan Company): Thank you. Your next question comes from the line of Devanshu Bansal with Emkay Global. Please go ahead.

Operator: Thank you. Your next question comes from the line of Devanshu Bansal with Emkay Global. Please go ahead.

Speaker #5: Yes, sir. Hi. thanks for taking my question and congratulations on a strong quarter. sir, Ashok sir, so last year also there was this, 50 bips one-off, gain which was there in the margin.

Devanshu Bansal: Yes, sir. Hi. Thanks for taking my question, and congratulations on a strong quarter. Sir, Ashok sir, last year also, there was this 50 basis points one-off gain which was there in the margin. Ideally, the current quarter margin at 10.9% compares with 11.3% last year, right?

Speaker #5: so ideally, the current quarter margin at 10.9% compares with 11.3% last year, right?

Speaker #2: Yeah.

Ashok Sonthalia: Yeah.

Speaker #5: Okay. And the overall. and sir, going ahead, so this reversal of 80 bips, is this the only reversal or that earlier 50 bips, reversal which was there last year, that can also sort of happen, in the next few quarters?

Devanshu Bansal: Okay.

Ashok Sonthalia: Yes.

Devanshu Bansal: Sir, going ahead, so this reversal of 80 basis points, is this the only reversal or that earlier 50 basis points reversal, which was there last year, that can also sort of happen in the next few quarters?

Ashok Sonthalia: That would have happened in next few quarters, for sure. That it was not something, neither that every quarter we had called out the reversal. Sometimes tracking of that reversal also the way gold prices move when various futures get settled. It is very likely that this will reverse, because when those inventories will be realized, then the losses or gains will get crystallized. Over next two to three quarters, these gains would gradually flow through to the numbers.

Speaker #3: That would have happened in the next few quarters for sure. It was not something major, and every quarter we had called out the reversal.

Speaker #3: And sometime tracking of that reversal also the way gold prices move when various futures get settled, but, but it is very likely that this will reverse because when those inventories will be realized, then the losses or gains will get crystallized.

Speaker #3: Over next two to three quarters, these, gains would gradually, flow through.

Speaker #5: Got it. And sir, this, this quarter it was 400 crore of benefit. but overall quantum of customs duty benefit, if you can call out for the entire year, and would it largely come in Q2 or some it some of it will come in Q3 also?

Devanshu Bansal: Got it. Sir, this quarter it was INR 400 crore of benefit. Overall quantum of customs duty benefit, if you can call out for the entire year. Would it largely come in Q2, or some of it will come in Q3 also?

Speaker #3: It will come in Q2 as well as in Q3, but I would rather refrain from giving a full year impact at this point of time.

Ashok Sonthalia: It will come in Q2 as well as in Q3, I would rather refrain from giving a full year impact at this point of time. Whenever we do, we will exactly qualify the way we had called out this time, so that you can knock that. We also don't want to take credit of that, because at some point of time when customs duty will go down, we will have the opposite situation. We want you to kind of all the time nullify that, and we will also do like that.

Speaker #3: We will whenever we do, we will exactly qualify the way we had, called out this time so that you can knock that off, you know.

Speaker #3: We also don't want to take credit for that, because at some point in time, when customs duty goes down, we will have the opposite situation.

Speaker #3: So we want you to kind of all the time nullify that. And we will also go like that.

Speaker #5: Fair point, sir. And last question from my end, at the time of acquisition, in my opinion, the dhamas, core business was not a loss-making business, right?

Devanshu Bansal: Fair point, sir. Last question from my end. At the time of acquisition, in my opinion, the Damas core business was not a loss-making business, right? Wanted to check as in reasons behind this loss in Q1. If you could sort of highlight that.

Speaker #5: So wanted to check as in, reasons behind this loss in Q1. if you could sort of highlight that?

Speaker #3: So, you know, no, yeah, you are right. Core business was not loss-making, but given the current situation of war, I think purchasing jewelry in Dubai, Saudi, and other countries is the last priority for anyone there, you know.

Ashok Sonthalia: Yeah, you are right. Core business was not loss-making. Given the current situation of war, I think purchasing jewellery in Dubai and Saudi and other countries is the last priority for anyone there. The footfall has fallen down, ticket size has fallen down, and if a business which was operating at whatever level, 20% to 30% from base level comes down, we will end up making losses.

Speaker #3: So the footfall has fallen down, ticket size has fallen down, and if business which was operating at whatever level—20, 30 percent—from those levels comes down, you will end up making losses.

Devanshu Bansal: Got it. Overall, international business is at a ballpark run rate of about INR 6,000 crore top line. How should we see the margin profile of this segment for this current year? Should it be largely neutral at the EBIT level, or we may make some profit here?

Speaker #5: Got it. So, sir, overall international business is at a ballpark run rate of about 6,000 odd crore top line. So how should we see the margin profile of this segment for this current year?

Speaker #5: It should be should it be largely neutral at the EBIT level or we may make some profit here?

Speaker #3: I would think that our rest of the portfolio of international business except dhamas is making profit. Mid single digit EBIT margin 5, 6 percent.

Ashok Sonthalia: I would think that our rest of the portfolio of international business except Damas is making profit, mid-single digit EBIT margin, 5% to 6%, which they will continue to make. Overall, Damas contribution in international business will not be very high. I would expect overall portfolio to be straight or not to be positive EBIT performance of the portfolio. Damas is contingent upon the current situation. As soon as that situation gets over, I am sure they will also improve pretty rapidly.

Speaker #3: They will continue to make. And overall, Dhamas' contribution in international business will not be very high. So I would expect the overall portfolio would still turn out to be positive, EBIT performance on the figure.

Speaker #3: And dhamas would be contingent upon the current situation. As soon as that situation gets over, I'm sure they will also improve pretty rapidly.

Speaker #5: Got it, sir. Thank you for taking my questions. Very clear.

Devanshu Bansal: Got it, sir. Thank you for taking my questions. Very clear.

Ashok Sonthalia: Okay.

Speaker #3: Okay.

Speaker #1: Thank you. Your next question comes from the line of Lathika Chopra with JP Morgan. Please go.

[Company Representative] (Titan Company): Thank you. The next question comes from the line of Latika Chopra with JP Morgan. Please go ahead.

Operator: Thank you. The next question comes from the line of Latika Chopra with JPMorgan. Please go ahead.

Speaker #4: Yeah. Hi team. my first question, you know, was around, you know, exchange schemes. We, we do see some jewelers, you know, kind of pushing for exchange against cash kind of a scheme.

Latika Chopra: Yeah. Hi, team. My first question was around exchange schemes. We do see some jewelers kind of pushing for exchange against cash kind of a scheme. Wanted to understand what are your views on this and how is Titan approaching this?

Speaker #4: Wanted to understand, you know, what are your views on this and how is Titan approaching this?

Speaker #2: Yeah. Thank you, Lathika. We have rolled out what we'd called 'Cash for Gold' in all our stores from the month of June, and we are not seeing significant traction here.

Arun Narayan: Yeah. Thank you, Latika. We have rolled out what we had called as cash for gold in all our stores from the month of June. We are not seeing significant traction here, that option is available for customers to bring their own gold and exchange that for cash. Not exchange, but convert that into cash.

Speaker #2: But that option is available for customers to bring their old gold and exchange it for cash. Not exchange, but convert it into cash.

Speaker #3: Okay. But I think,

Ajoy Chawla: I think, Latika, your question is also on the economics of exchange per se, right?

Speaker #5: your Lathika, your question is also on the economics of exchange per se, right? Not just the.

Latika Chopra: Yes. Absolutely. Yes. Thank you.

Speaker #4: Yes, yes. Absolutely. Yes. Thank you.

Speaker #2: But it is just go over your question again.

Arun Narayan: Sorry, just go over your question again.

Speaker #4: I was just looking for, you know, your approach for this, you know, versus some of the your peers actually aggressively pushing for this scheme.

Latika Chopra: I was just looking for your approach for this versus some of your peers actually aggressively pushing for this scheme. Just wanted to understand the economic benefit of doing so. When you're exchanging jewelry for jewelry, it still makes sense for you to grab a new consumer. Exchanging gold for cash, what is the thought process from your perspective?

Speaker #4: So just wanted to understand, you know, the economic benefit of doing so because when you're exchanging jewelry for jewelry, it still makes sense for you to grab a new consumer.

Speaker #4: But, you know, exchanging, gold for cash, you know, what is the thought process, you know, from your perspective?

Speaker #2: No, from our perspective, it's about solving a customer problem. It's not as much, about, make, you know, about, profiting from it. And many of these customers are our own customers and if we widen the basket of solutions for them, it's the most responsible thing to do.

Arun Narayan: From our perspective, it's about solving a customer problem. It's not as much about profiting from it. Many of these customers are our own customers, and if we widen the basket of solutions for them, it's the most responsible thing to do. We also think that it could be a way to acquire new customers, those in need for money and have gold with them. That's the way that we are looking at it, purely as a customer solution as opposed to a revenue stream.

Speaker #2: And we also, think that it could be a way to acquire new customers, those in need for money and have gold, with them. So that's the way that we are looking at it purely as a customer solution, as opposed to, a revenue stream.

Speaker #2: So yeah.

Speaker #4: It is not it is not diluted for your margin profile or, versus exchanging gold for gold, what is the difference, you know, in terms of.

Latika Chopra: It is not diluted for your margin profile versus exchanging gold for gold. What is the difference in terms of-

Arun Narayan: The way that the program works, there is a deduction which is there when you bring gold for exchange, that nullifies this or takes care of this.

Speaker #2: The way that the way that the program works, there is a deduction which is there when you bring gold for exchange. and that takes care of, takes nullifies this or takes care of this.

Speaker #4: Okay. So it's, it's not in neutral to that extent.

Latika Chopra: Okay. It is margin neutral to that extent.

Speaker #2: Right.

Speaker #5: Lathika, if I may add a joy here. I think at the most fundamental level, what's good for the country, what's good for the planet, what's good for the customer, we have always believed is also good for the company and the brand.

Ajoy Chawla: Latika, if I may add, Ajoy here. I think at the most fundamental level, what's good for the country, what's good for the planet, what's good for the customer, we have always believed is also good for the company and the brand. I think that's a larger piece to look at. How to ensure that the economics don't dilute our margin, those are things we as an organization have figured out how to do without making it unattractive for the customers. We wouldn't worry too much about it. In fact, we believe there is a much larger positive gains it is not going to dilute our economics.

Speaker #5: I think that's the larger piece to look at. How to ensure that the economics don't dilute our margin? Those are things we as an organization have figured out how to do without making it unattractive for the customers.

Speaker #5: So we wouldn't worry too much about it. In fact, we believe there's a much larger positive gain and it is not going to dilute our economics.

Speaker #4: Sure. Thanks. the second bit was, you know, buyer growth of 5 percent, you know, when gold prices are stable. Is this buyer growth tracking in line with your expectations?

Latika Chopra: Sure. Thanks. The second bit was buyer growth of 5% when gold prices are stable. Is this buyer growth tracking in line with your expectations? How do you think this plays out, assuming gold stays stable for the rest of the year? The second bit connected to this margin, one clarification, this 11.9% is against 11.8 in the base quarter for TMZ. If so, in a quarter where the studded share was broadly similar, what led to this quantum of margin moderation? Thank you so much.

Speaker #4: How do you think this plays out, assuming gold stays stable for the rest of the year? The second bit is connected to just margin—one clarification.

Speaker #4: This 10.9 percent is against 11.8 in the base quarter. For TNZ and if so, in a in a quarter where the standard share was broadly similar, what led to, you know, this quantum of, margin moderation?

Speaker #4: Thank you so much.

Speaker #2: Yeah. On the buyer growth, like we like I said earlier to the first question, we had a, you know, a good period in April and a good period in June.

Arun Narayan: Yeah, on the buyer growth, like I said earlier to the first question, we had a good period in April and a good period in June. There was a bit of sentiment that was dampened in the month of May, so this is an average for the entire quarter. If gold rates stay stable, we always see that sentiments are positive and people come back and they don't sit on the fence. Whenever gold rates are volatile or if they're going only in one direction, which is downwards, then we see people tending to wait, if they don't have a urgency to buy. Stable gold rates or even if it is going up marginally, always helps him. Yeah. That's one.

Speaker #2: And there was a bit of sentiment that was dampened in the month of May. So, this is an average for the entire quarter. And, see, if the gold rate stays stable, we always see that sentiments are positive and people come back and they don't sit on the fence.

Speaker #2: But whenever gold rates are volatile or if they are going only in one direction, which is downwards, then we see people tending to wait if they don't have a urgency to buy.

Speaker #2: So, stable gold rates, or even if it is going up marginally, always helps. Yeah, that's one. Second, I think a point to note is our buyer growth on the studded part of the portfolio has really been going up, and has been going up since Q4 of last year.

Arun Narayan: Second, I think a point to note is our buyer growth on the studded part of the portfolio it's really been going up and going up since Q4 of last year. That's the heartening part of the story that we would like you all also to take note of.

Speaker #2: And that's the heartening part of the story that we would like you all to take note of.

Speaker #3: And then Lathika on margin, the base quarter also we had called out a 50 basis point of one time. So actually it becomes 11.3 versus 10.9.

Ajoy Chawla: Latika, on margin, the base quarter also we had called out a 50 basis point of one time. Actually it becomes 11.3 versus 10.9. The factors which in the last four quarter, the gold price impact we have called several time. Gold have been playing to all the positives which happened in this quarter, good studded growth, et cetera. Still eventually there is a 40 basis point erosion of GC margin.

Speaker #3: The fact is, in the last four quarters, the gold price impact—which we have talked about several times—those have been playing out. So all the positives which happened in this quarter—good, studded growth, etc.—but still, eventually, there is a 40 basis point erosion of GC margin.

Speaker #2: Yes.

Speaker #4: Understood. Thanks for clarifying. Yeah.

Arun Narayan: Yes.

Latika Chopra: Understood. Thanks for clarifying. Yeah.

Speaker #5: Thank you. The next question comes from the line of Nihal Mahesh Shyam with HSBC. Please go ahead.

Operator 2: Thank you. The next question comes from the line of Nihal Mahesh Jham with HSBC. Please go ahead.

Operator: Thank you. The next question comes from the line of Nihal Mahesh Jham with HSBC. Please go ahead.

Speaker #6: SI team, good evening. Am I audible?

Nihal Mahesh Jham: Yes, hi, team. Good evening. Am I audible?

Speaker #3: Yes.

Arun Narayan: Yes.

Speaker #5: Yep.

Nihal Mahesh Jham: Yeah. Two questions. First is, on your comment on the impact in May, just wanted to understand that, say because of Adhik Mas, was there any demand that would have got lost or most of it got covered this quarter? Just to understand if there is any sort of circulation that could happen into Q2.

Speaker #6: Two questions. first is, on your comment on the impact in May, just wanted to understand that, say, because of Adik Nas, was there any demand that would have got lost or most of it got covered this quarter?

Speaker #6: Just to understand if there is any sort of percolation that could happen into Q2.

Speaker #2: Yeah. No, we believe it got covered. like I said, it Adik Nas started, middle of May and by the time we got, into June, we started seeing things recover.

Arun Narayan: No, we believe it got covered. Like I said, Adhik Mas started middle of May, and by the time we got into June, we started seeing things recover. While Adhik Mas technically ended on 17 June, if I have the day right, we started seeing traction well before that. We believe that what we may have lost in May, we have gained in June. We don't see that trickling in into Q2.

Speaker #2: And whilst Adik Nas technically ended on the 17th of June, if I have the day right, we started seeing traction well before that.

Speaker #2: So we believe that, you know, the, what we may have lost in May, we have gained in June. We don't see that trickling in, into quarter two.

Speaker #6: Understood. the second question was, on the margin bit again, that, you know, if you look at it organically, there has been a slight moderation in the margin and we've obviously seen more than a 30 percent kind of an LFL growth, this quarter.

Nihal Mahesh Jham: Understood. The second question was on the margin bit again, that if you look at it organically, there has been a slight moderation in the margin, and we've obviously seen more than a 30% kind of an LFL growth this quarter. Just to understand that as we move into H2, obviously it may not be practically possible on that high base to deliver that kind of margin. When we say the 11% EBIT margin, what will be the driver for this to improve? Because incrementally, I would believe at least from a base impact perspective, H2 will have a slight impact in terms of circling a very high base. Just to understand, how do we plan to get to that 11% where we started off at 10.9% organic?

Speaker #6: So, just to understand, as we move into H2, obviously it may not be practically possible, on that high base, to deliver that kind of margin.

Speaker #6: so when we say the 11 percent debit margin, what will be the driver sort of for this to improve? Because incrementally I would believe at least from a base impact perspective, H2 will have a slight impact in terms of, you know, circling a very high base.

Speaker #6: So just to understand, how do we plan to get to that 11 percent where we started off at, 10.9 percent organics?

Speaker #3: So, you know, we talked about, margin is arranged. We never give a, you know, levy. Say 11 percent is kind of center of gravity where in some quarter you will find you are doing slightly better, some quarter you are doing below that also.

Arun Narayan: We've talked about margin is a range. We are saying 11% is kind of center of gravity, where in some quarter you will find we are doing slightly better, some quarter we are doing below that also. It's not a very precise point. The second thing also, there are various things which are happening in the system. We have talked about acceptability of customer or introduction of lower carats. They generally have a positive impact on margin. Various things are being done. As we think if gold prices stabilize and we go forward, perhaps the product mix will also improve. The whole product mix where coin used to be slightly higher, it might start coming down, which we see signs of. All of this can result into closer to that number.

Speaker #3: So it's not a very precise point, you know. the second thing also there are various things which are happening in the system. We have talked about acceptability of customer or introduction of, lower carriages where we they generally have a positive impact on margin.

Speaker #3: So, various things are being done. And as we think, if gold prices stabilize and we go forward, perhaps the product mix will also improve.

Speaker #3: The whole product mix, where coin used to be slightly higher, might start coming down, which we see signs of. So all of this can result in getting closer to that number.

Speaker #3: That's our belief at this point in time, and that is why we are saying something around that number. We are very, very hopeful we will be able to deliver on a three-year basis.

Arun Narayan: That's our belief at this point of time, that is how we are saying something around that number, we are very hopefully will able to deliver on a similar basis.

Speaker #6: Right. I'll just.

Ajoy Chawla: Go ahead. I'll just add to it. I think the product mix swinging upwards towards more studded sales is a very important driver, and that's a focus area also for the division. The second bit I would say is, I'll elaborate, as Ashok pointed out, there are many programs we are running to enhance the gross margin given the high gold rate regime, and those will start bearing fruit in H2, more so than H1. Thirdly, I think if gold prices remain subdued, the opportunity to be able to sell a more profitable mix with higher ASPs and even on the gold jewelry side, those drivers can also work towards that. There are these drivers. How they play out, of course, is a matter of what happens.

Speaker #2: I'll add, I'll just add to it, I think the product mix are swinging upwards towards more studded sale. It's a very important driver and that's, that that's a focus area also for the division.

Speaker #2: the second bit I would say is as, you know, I'll elaborate as Ashok pointed out, there are many programs we are running. To enhance the gross margin, given the high gold rate regime and those will start bearing fruit in the second half of the year, more so than the first half.

Speaker #2: And thirdly, I think if gold prices remain subdued, the opportunity to be able to sell a more profitable mix with higher AMCs—and even, you know, on the gold jewelry side—those drivers can also work to our benefit.

Speaker #2: So there are these drivers. How they play out, of course, is a matter of, you know, what happens.

Speaker #6: Got it. I'll just slip in one question quickly that, you know, it's been picking up that with the correction in gold prices that there has been some moderation and demand in the industry.

Nihal Mahesh Jham: Got it. I'll just slip in one question quickly that, in picking up that with the correction in gold prices, that there has been some moderation in demand in the industry. Just wanted to understand, any such trends visible or none of it at our end?

Speaker #6: Just wanted to understand any such trends visible or none of it at our end?

Arun Narayan: Okay. The only point to add to what we've already spoken of is, I think towards the end of July, perhaps, we did see some softness on the plain gold side. Okay. It does happen sometimes when the price is range bound or if people also hear news from various sources that whales have taken hold of gold and gold is likely to go down. A lot of confusing news that people were exposed to during the month of May, and that kind of puts people back to the fence, and they tend to wait it out. We've also seen in the last two, three days that there is an upward movement. I guess once there is clarity on where it's going, perhaps those who are on the fence will come back.

Speaker #2: okay. The only point to add to what, you know, what we've already spoken of is, I think in the towards the end of July, perhaps, you know, we did see some softness in, on the plain gold side.

Speaker #2: Okay. And it does happen sometimes when the price is range-bound or the price— and if people also hear news from various sources that, you know, bears have taken hold of gold and gold is likely to go down.

Speaker #2: So a lot of confusing news that people were, exposed to during the month of May. And that kind of puts people back to the, you know, fence and they tend to wait it out.

Speaker #2: But we've also seen in the last two, three days that there is a upward movement. So I guess once you know, there is there is clarity on where it's going, perhaps those who are on the fence will come back.

Speaker #2: So there was a bit of softness towards the end of July, you know, which is of course outside the scope of quarter one. But that's only bound to happen when people are wanting to time the market.

Arun Narayan: There was a bit of softness towards the end of July, which is of course outside the scope of Q1. That's only bound to happen when people are wanting to time the market.

Nihal Mahesh Jham: Thank you.

Ajoy Chawla: That is on account of plain gold jewelry. Studded may not be so.

Speaker #2: That's largely on account of plain gold jewelry. Studded may not be so. Yeah, that's right.

Arun Narayan: Yeah, that is right.

Speaker #6: Thank you so much. That was excellent.

Nihal Mahesh Jham: Thank you so much. That was it for myself.

Speaker #5: Thank you. Your next question comes from the line of Avi Mehta with Macquarie Capital. Please go ahead.

Ajoy Chawla: Thank you.

Operator 2: The next question comes from the line of Avi Mehta with Macquarie Capital. Please go ahead.

Operator: The next question comes from the line of Avi Mehta with Macquarie Capital. Please go ahead.

Speaker #7: Hi, Dean. thanks for this. just first bit if you could help us understand what was the average buyer growth if I were to remove me, say, average April, and June, just to get a sense on how buyer growth is actually trending in the jewelry space?

Avi Mehta: Hi, team. Thanks for this. Just first bit, if you could help us understand, what was the average buyer growth if I were to remove May, say, average April and June, just to get a sense on how buyer growth is actually trending in the jewelry space?

Speaker #2: You'd like us to remove what?

Arun Narayan: You'd like us to remove what?

Avi Mehta: You said May had these one-off factors, right? If I were to kind of look at either the exit, say June or average of April and June, just to get a sense on normalized where how versus what we saw last quarter.

Speaker #7: Ma you said May had these one-off factors, right? So if I were to kind of look at either the exit, say, June or average of, you know, April and June, just to get a sense on normalized where how buyer growth is trending versus what we saw last quarter.

Speaker #2: No, thanks for that question. I just want to reiterate that the normalizing happened in June. It's already happened in June. So what you see for the quarter is after that normalizing.

Arun Narayan: No, thanks for that question. I just want to reiterate that the normalizing happened in June. It's already happened in June. What you see for the quarter is after that normalizing. These one-off things are part of our industry. There are auspicious times to buy. There are inauspicious times to buy. Like we also mentioned in the analyst meet

Speaker #2: And these one-off things are part of our industry. I mean, there are auspicious times to buy. There are inauspicious times to buy. You know, like we also mentioned in the analyst meet.

Speaker #2: This is pretty much BAU. And things tend to catch up. So what we like I said, what we may have lost in May, it appears that we have gained in June.

Ashok Sonthalia: This is pretty much BAU and things tend to catch up. Like I said, what we may have lost in May, it appears that we have gained in June. That averaging out or normalization has already happened. You could take the Q1 average as the normalized base.

Speaker #2: So that averaging out or normalization is already happened. So you could take the quarter one average as the normalized kind of base.

Speaker #7: Okay. So where I was coming from is, we were trying to get a sense on, as gold prices—assuming gold prices remain where they are and this volatility doesn't continue—the assumption that I had was sales or value growth will trend towards buyer growth.

Avi Mehta: Okay. Where I was coming from is we were trying to get a sense on, assuming gold prices remain where they are and things just volatility doesn't continue, the assumption that I had was sales or value growth will trend towards buyer growth, and hence you appreciated because from your understanding, the realization growth has some semblance of bunching up that thing, it did probably happen. That is where I was coming from. If that understanding itself is inaccurate or if you could help us understand how we should look at the difference between buyer growth and value growth as gold prices start to become YoY flattish or your thoughts on that.

Speaker #7: And hence to appreciate it because the realizations were from your understanding, the realization growth has some semblance of, bunching up the trend. It did probably happen.

Speaker #7: So that is where I was coming from. And if you could, if that understanding itself is inaccurate, or if you could help us understand how we should look at the differential between buyer growth and value growth as gold prices start to, you know, become year-on-year flat-ish, or your thoughts on that?

Ashok Sonthalia: Abhi, I think it is too early to conclude. One, when gold prices have softened, I think we need to give some time to customer also to make up their mind. Our thesis is that our top-line growth is kind of combination of some of these things. When the gold prices would come down, more buyers will come in, and that is why we don't focus too much as a team and as a company on these things. I think it is too early to just see June month, whether it was more than 5%. I think that granular level of month by month growth, I don't think we want to. There are regional differences in all these things, where weddings are happening. Adhik Mas is not south story, it is more north story.

Speaker #7: I think it is true, at least to conclude, you know, when gold prices have softened. But I think we need to give some time to customers also to make up their mind.

Speaker #7: Our thesis is also that our top-line growth is kind of a combination of some of these things. And if gold prices come down, more buyers will come in, and that is why we don't focus too much as a team and as a company on these things.

Speaker #7: I think it is too early to just see June month whether it was more than 5% and, but, but I think that granular level of, month by month growth, I don't think we want to.

Speaker #7: And then there are, you know, regional differences in all these things. we're weddings are happening a bit much is not South history. It is more North history.

Speaker #7: So, I think let us give it some more time to see the impact on the consumer. Fair enough. If I may add, if you're looking for what we are targeting, we are targeting, as always, double-digit aggressive growth.

Ashok Sonthalia: I think let us give it some more time to see the impact on consumers.

Ajoy Chawla: If I may add. If you're looking for what that we are targeting, we are targeting, as always, a double-digit aggressive growth. That's something which we shared even in the investor day. Those targets and our ambitions don't go away. How they play out between buyer, ticket size, gold prices, that's for us to manage.

Speaker #7: And that’s something we shared even during Investor Day. Those targets and our ambitions don’t go away. How they play out between buyer ticket size and gold prices, that’s for us to manage.

Speaker #7: Okay. Got it. Okay. I, I, I get that. Just a second bit on the MTM gain and loss. Just. Minus what exactly drives this?

Avi Mehta: Okay. Got it. Just a second bit on the inventory gain and loss. Just if you remind us what exactly drives this. Is it more change in mix towards exchange? If you could just help explain it, if that's okay. Just to refresh me a bit.

Speaker #7: Is it more a change in mix towards exchange, or—you know, could you just help explain, if that's okay? And just to refresh the memory.

Speaker #8: Well, you know, the this time as I was saying, there was price differences between international market and domestic market. And we procure the advanced procurement, which is based on the domestic market.

Ashok Sonthalia: This time, as I was saying, there were price differences between international market and domestic market. We procured the advanced procurement which is based on the domestic market. Inventory valuation happens on the international benchmark because there is no spot benchmark in India, it gives rise to accounting and issuance because inventory is being done on certain basis, reference point. Hedges are being done at a certain reference point. That difference generally is very manageable and need not be called out quarter-on-quarter. In current situation, when CD, customs duty impact, all of a sudden created wide gap between international and domestic, we ended up procuring quite a bit gold at that point of time. That is why we are calling this out. Every quarter, a small amount of this valuation between inventory valuation and hedge valuation happens.

Speaker #8: Inventory valuation happens on the international benchmarks because there is no spot benchmark in India. And it ri it gives rise to accounting instruments because inventory is being done on certain basis, certain point.

Speaker #8: Hedges are being done at a certain reference point, and that difference generally is very manageable and would not be called out quarter on quarter.

Speaker #8: But in current situation when CD custom duty impacts all of a sudden created wide gap between international and domestic, and we ended up procuring quite a bit gold at that point of time.

Speaker #8: So that is why we are calling this out. Every quarter, a small amount of this variation between inventory valuation and gold valuation happens.

Speaker #8: It is part of BAU, yeah?

Ashok Sonthalia: It is part of this.

Avi Mehta: Okay. Got it. That's all from my side. Thank you very much.

Speaker #7: Okay. Got it. Got it, sir. That's all from my side. Thank you very much.

Speaker #5: Thank you. Your next question, from IIFL Capital. Please go ahead.

Operator 2: Thank you. The next question is from Myna Kaivalya Bain with IIFL Capital. Please go ahead.

Operator: Thank you. The next question is from Myna Kaivalya Bain with IIFL Capital. Please go ahead.

Percy Panthaki: Yeah. Hi, sir. This is Percy Panthaki. Can you hear me?

Speaker #7: Yeah. Hi, sir. This is Percy Pontic now. Can you hear me? Yeah. Hello. A little, little yeah. Yeah. yeah. So, just, wanted to understand, going ahead, if the gold price remains as at where it is, why Q4 the YY inflation will become, zero.

Ashok Sonthalia: Yeah. Hello. A little louder, Percy.

Percy Panthaki: Yeah. Just wanted to understand, going ahead, if the gold price remains at where it is, by Q4, the YoY inflation will become zero. A large part of our approach is being driven by gold price inflation. In a scenario where gold price inflation is zero, do you think we can sort of maintain an 18% to 20% kind of top-line growth in that kind of a scenario? I'm not talking only about Q4, although the annualization happens in Q4. This is more of a general or structural kind of a query, that if for a few quarters the YoY gold price inflation is zero, in that scenario, does our growth rate come down versus our targeted 18% to 20% band?

Speaker #7: And a large part of our growth is being driven by gold price inflation. So, in a scenario where gold price inflation is zero, do you think we can, sort of, maintain an 18% to 20% kind of top-line growth in that scenario?

Speaker #7: And I'm not talking only about Q4, although the, anniversarization happens in Q4. This is more of a general, or, structural kind of a query.

Speaker #7: That if for a few quarters the YY gold price, inflation is zero, in that scenario, does our, growth rate come down versus our targeted 18 to 20% band?

Speaker #7: Yeah. So I think, you know, our game plan across all our brands takes into account this context. in a scenario like that, we would certainly go all out to acquire buyers and, use that to drive growth.

Ashok Sonthalia: Yeah. I think our game plan across all our brands takes into account this context. In a scenario like that, we would certainly go all out to acquire buyers and use that to drive growth. Fundamentally, our approach to the business is an optimistic one, and it is one to drive overall growth, like Ajoy mentioned. Whenever there is turbulence or some kind of gold rate playing in people's mind, there is a certain playbook to give them comfort and drive growth. Whenever that goes out of the equation and there is more stability, obviously what we would do would be to acquire customers and overall grow the business. We will have to see how things play out, and closer to that situation, we choose the cards that we have to play. What you're saying is true.

Speaker #7: Because fundamentally, our approach to, to the business is, is an optimistic one, and it is one to drive overall growth like a Joy mentioned.

Speaker #7: So whenever there is a turbulence or some kind of a, you know, gold rate playing in people's mind, then there is a certain playbook to give them comfort and drive growth.

Speaker #7: Whenever that goes out of the equation and there is more stability, then obviously what we would do would be to gain, you know, acquire customers and overall grow the business.

Speaker #7: So we will have to see how things play out and closer to that situation, then you know, we choose the cards that we have to play.

Speaker #7: But what you're saying is, is true. It could play out that way. But we'll have to wait and see. Understood. related query to this is again in that kind of a gold price scenario, do you see the quantum of, sort of competitive spending either in terms of advertisements or in terms of normalizing?

Ashok Sonthalia: It could play out that way, but we'll have to wait and see.

Percy Panthaki: Understood. Related query to this is again, in that kind of a gold price scenario, do you see the quantum of competitive spending, either in terms of advertisements or in terms of discounts, promotions sort of normalizing? In context of that, do you expect the headwind on your margins to maybe turn into a tailwind and you could see, even with a slightly lower growth, being able to deliver that 18% to 20% bottom line growth?

Speaker #7: And in the context of that, do you expect the headwind on your margins to maybe turn into a tailwind, and that you could see, even with slightly lower growth, being able to deliver that 18 to 20% bottom line growth?

Speaker #7: Yeah. Honestly, now if you go back last two, three years, we have seen all kinds of scenarios. Now to pretty much have a playbook for all of them.

Arun Narayan: See, honestly, if you go back last two, three years, we have seen all kinds of scenarios, now to pretty much have a playbook for all of them. In a scenario when competitive intensity is at its peak, people are discounting like crazy, or a time when gold rates are stable or it's going up, it's going down. By now we think we have a handle. You are right, some new situation could emerge and we might end up learning from it, but by and large, we think we have at least some plans or some experiences that can help us when these situations come up.

Speaker #7: You know, scenario when competitive intensity is at its peak, people are discounting like crazy, or a time when gold rates are stable, or it's going up, it's going down.

Speaker #7: So by now, we think we have a handle. You're right. Some new situation could emerge and we might end up learning from it. But by and large, we think we have at least some you know, plans or some experiences that can help us when these situations kind of come up.

Speaker #8: It's just one point I can add, Arun, that if you remember, in our analyst day, we guided the FY30 number. So, quarter-on-quarter numbers can go up because in some situations, you may not react immediately. But overall, medium to long term, we have always said that the gold digital growth is strong.

Ashok Sonthalia: Just one point I can add, Arun, that if you remember in our analyst day, we guided FY30 numbers. Quarter on quarter numbers can go up because some of the situations we may not react immediately. Overall, medium to long term, we have always said that the group is strong, the double-digit growth, and that is how you would reach to that FY30 number. That has not changed at all in our mind, and we don't have any doubt at this point of time that we are not marching towards that.

Speaker #8: And that is how you will reach that FY30 number. So that has not changed at all in our mind. And we don't have any doubt at this point in time that we are not marching towards that.

Percy Panthaki: Over the last several quarters because of the gold price inflation, the entire industry has done a lot of work in terms of making the jewellery lighter weight. Versus earlier, if a piece has the same look and feel or design, etc., making the same kind of piece or similar kind of piece lighter in weight. If the gold price remains flat for a longer period of time, do you think that could be one of the levers in terms of gradually increasing or reverting back to or at least increasing slightly the weight per piece? Doing the reverse of what we did over the last 2 to 3 years.

Speaker #7: And over the last, several quarters, because of the gold price inflation, the entire industry has done a lot of work in terms of making the jewelry lighter weight, versus earlier if a piece has the same look and, feel or design, etc., making the same kind of, piece or similar kind of piece, lighter in weight.

Speaker #7: if the gold price remains flat for a longer period of time, do you think that could be one of the lever in terms of gradually increasing, or reverting back to the or, at least increasing slightly the weight, per piece?

Speaker #7: I mean, doing the reverse of what we did over the last two, two, three years. See, like a Joy said, sometime back, our approach always has been you know, to solve versus to merely sell.

Arun Narayan: Like Ajoy said some time back, our approach always has been to solve versus to merely sell. We need to do things as an industry and also as a company to bring more consumers in the category, keep them invested in the category. For that, jewellery has to be both exciting and accessible. Accessibility comes from keeping it lightweight, looking at a variety of caratages, looking at an exchange program that is strong to get them to recycle. All these are different levers that we are using to keep jewellery accessible to a wide set of consumers across the different town classes that we are present in.

Speaker #7: And, you know, we, we need to do things as an industry and also as a company to bring more consumers in the category, keep them you know, invested in the category.

Speaker #7: And for that, jewelry has to be both exciting and accessible. And accessibility comes from keeping it lightweight, looking at a variety of carriages, looking at an exchange program that is strong to get them to, recycle.

Speaker #7: So all these are different levers that we are using to keep consumers, you know, to keep jewelry accessible to a wide set of consumers across, the different, town classes that we are present in.

Speaker #7: Okay. Got it. Thank you very much. And all the same. Yeah. If I may just step in once again. I think the concerns that are enhancing across several questions across different people is if gold prices don't go up or they remain down, can you guys manage to grow?

Percy Panthaki: Got it. Thank you very much and all the best.

Arun Narayan: If I may just step in once again. I think the concerns that are sensing across several questions across different people is if gold prices don't go up or they remain down, can you guys manage to grow? Therefore it's between buyers, ticket sizes. These are not two independent entities which kind of move on their own. These are related. Few years back and a few quarters back, I had heard enough questions of people asking me, "All right, gold prices have gone so much, how are you going to continue to grow?" Now, the question is if gold prices don't go up, how will you grow? I think we have seen buyer growth actually taper down in the last couple of years because gold prices went up dramatically. Why can't the reverse happen? Because India's love for gold has not gone away.

Speaker #7: Okay. And therefore, it's between buyers, ticket size. See, these are not two independent entities which kind of move on their own. These are related.

Speaker #7: A few years back and a few quarters back, I had heard enough questions of people asking me, "Are gold prices have gone so much?

Speaker #7: How are you going to continue to grow?" Now the question is if gold prices don't go up, how will you grow? So I think we have seen buyer growth actually taper down in the last couple of years because gold prices went up dramatically.

Speaker #7: Why can't the reverse happen? Because India's love for gold has not gone away. At the same time, India's... is not going away. So I think if you were to step back a little bit and look a few years ahead and, you know, not get worried about a particular month-on-month situation on gold price, I believe the headroom is huge.

Arun Narayan: At the same time, India's is not going away. I think if you were to step back a little bit and look a few years ahead and just not get worried about a particular month-on-month situation on gold price, I believe the headroom is huge, not just for the overall industry, but certainly for us as a company because our market share is also still single digit. For us to target a healthy double-digit growth in jewelry is inevitable. How it plays out in a particular month and quarter might vary a little bit, but I'm very bullish on that. Margins, I think will follow if we are able to manage the execution there.

Jay Doshi: At the same time, India's is not going away. I think if you were to step back a little bit and look a few years ahead and just not get worried about a particular month-on-month situation on gold price, I believe the headroom is huge, not just for the overall industry, but certainly for us as a company because our market share is also still single digit. For us to target a healthy double-digit growth in jewelry is inevitable. How it plays out in a particular month and quarter might vary a little bit, but I'm very bullish on that. Margins, I think will follow if we are able to manage the execution there.

Speaker #7: Not just for the overall industry, but certainly for us as a company because our market share is also still single digit. So for us to target a healthy double digit growth in jewelry is inevitable.

Speaker #7: How it plays out in a particular month and quarter might vary a little bit, but I'm very bullish on that. And margins, I think, will follow if we are able to manage the execution there.

Percy Panthaki: Got it, sir. Thank you very much.

Speaker #7: Got it. Got it, sir. Thank you very much.

Speaker #1: Thank you. The next question comes from the line of Jayadoshi with Kotak. Please go ahead.

Arun Narayan: Thanks.

Operator 2: Thank you. The next question comes from the line of Jay Doshi with Kotak. Please go ahead.

Operator: Thank you. The next question comes from the line of Jay Doshi with Kotak. Please go ahead.

Speaker #7: Sure. Hi. Thanks a lot. Hi. congratulations on good execution in our challenging environment. I've got, a couple of questions. First one is, you know, could you comment a little bit on competitive intensity?

Jay Doshi: Sure. Hi, thanks a lot. Hi, congratulations on good execution in a challenging environment. I've got a couple of questions. First one is, could you comment a little bit on competitive intensity? Because the last two, three years in a rising gold price environment there were quite a few discounts by other players on making charges and all. Now with gold price stabilizing, are you seeing that with competitive pressure on making charges, gold rate, markup, all that has eased a little bit? That's my first question. Second question is recently, I was visiting some stores and I observed that Indriya was advertising 50% discount on diamond value and then my personal experience by visiting Tanishq store in the ongoing Festival of Diamonds indicates that even your discounts on diamond value this time around is a little bit higher than what it usually is in FOD.

Speaker #7: Because, you know, over the last two, three years, you know, rising gold price environment, you know, there were, you know, quite a few discounts by other players on making charges and all.

Speaker #7: Now with gold price stabilizing, are you seeing that the competitive pressure on making charges gold rate, markup, all that has eased a little bit?

Speaker #7: that's my first question. And second question is, recently, you know, I was visiting some stores and I observed that Indria had was advertising 50% discount on diamond value and then, you know, my sort of personal experience by, you know, visiting Tanish store in, the ongoing festival of diamond indicates that even your discounts on diamond value this time around is a little bit higher than what, you know, it usually is in FOD.

Speaker #7: So is this because you are currently consuming low-cost, low-price natural diamond inventory and so you are better positioned to sort of offer better value through discounts?

Jay Doshi: Is this because you are currently consuming low cost, low price, natural diamond inventory, you are better positioned to offer better value through discounts? Or is the market more competitive on studded jewelry at this point of time, which is forcing you to probably offer slightly higher discounts in this FOD versus last year?

Speaker #7: or is the market more competitive on studied jewelry at this point of time? which is forcing you to probably offer slightly higher discounts in this FOD versus last year?

Speaker #7: Okay. So I, I'll start from reverse order. So the FOD offer we have this time is a flat 20% off on diamond value. Pretty much the same as the last one of, the months of Jan, Feb.

Arun Narayan: Okay. I'll start from reverse order. The FOD offer we have this time is a flat 20% off on diamond bands. Pretty much the same as the last one of the months of Jan, Feb. We may have some products which may be aged, where we may be offering a higher discount, but by and large, the structure of the offer is not changed in any manner. As far as competitive intensity goes, we are all aware of number of brands, number of stores, number of players that are increasing in the category, and obviously that brings a certain competitive intensity to bear. The discounting is something that keeps happening, which is different in different markets based on the context of that market and also the segment. I'll actually request Suman to come in here.

Speaker #7: We may have some products which, may be aged, maybe, may be offering a higher discount, but by and large, by and large, the structure of the offer is not changed.

Speaker #7: in any manner. As far as competitive intensity goes, in, I mean, we are all aware of number of brands, number of stores, number of players that are increasing in the category.

Speaker #7: And obviously, that brings a certain competitive intensity to bear. And, discounting is something that keeps happening, which is different in different markets based on the context of that market and also the segment.

Speaker #7: I mean, I'll actually request Shaman to come in here. You know, because if you were to no, because it's, it's yeah. Thank you. Like Arun said, we also pretty much have the similar offer.

[Company Representative] (Titan Company): Like Arun said, we also pretty much have the similar offer. The offer that we ran, it was run in the past, and especially after the announcement and subsequent thing that happened, we quickly responded, came up with an offer which seemed like attractive for customers. In fact, May H2 and June has been kind of a record kind of a performance that we saw. We could buck the impression that the initial one week had, because we could respond to the situation better. In terms of overall discount, I don't think there is any significant structural change.

Speaker #7: The offer that we ran, it was run in the past. And especially after the announcement and subsequent impact that happened, we quickly responded, came up with an offer which seemed like, attractive for customers.

Speaker #7: In fact, the second half of May and June has been a kind of record performance that we saw. So, we could buck the impression that the initial one week had, because we could respond to the situation better.

Speaker #7: but in terms of overall discount, I don't think there is any significant structural change. sure. Thank you. Sorry. did you answer the question on, you know, making charges for the plain gold jewelry?

Jay Doshi: Sure. Thank you. Sorry. Did you answer the question on making charges for the plain gold jewelry? How is the competitive intensity there?

Speaker #7: how is the competitive, intensity there?

Speaker #8: no. We are I

Arun Narayan: No. We don't see a substantial increase in competitive intensity. As you are aware, it's only been going up over the two to three years.

Speaker #7: I mean, we don't see a substantial increase in competitive intensity. As you are aware, it's only been going up over the past two to three years.

Jay Doshi: Sorry. Sir, my question was whether you're seeing easing of competitive intensity in plain gold jewelry, given that,

Speaker #7: Sorry. So my question was whether you're seeing easing of competitive intensity in plain gold jewelry given that gold prices have stabilized in your okay.

Arun Narayan: No.

Jay Doshi: gold prices have stabilized and you're okay. No changes there.

Speaker #7: So, no changes there. We are not seeing any easing up of competitive intensity. We are seeing more of the same. Obviously, the intensity in certain geographies is much higher, and has been much higher, in the last two to three years.

Arun Narayan: We're not seeing any easing up of competitive intensity. We are seeing it more of the same. Obviously, the intensity in certain geographies is much higher and has been much higher in the last two to three years, for example, in Gujarat. Right? There are regional dispersions which are there, but nothing specifically to call out at either end. Either it's gone up significantly or it's come down significantly.

Speaker #7: For example, in Gujarat, right? So there are regional dispersions, which are there. But nothing specifically to call out, at either ends, either it's gone up significantly or it's come down significantly.

Speaker #7: Understood. Thank you so much, sir.

Jay Doshi: Understood. Thank you so much, sir.

Speaker #1: Thank you. Your next question comes from the line of Harit Kapoor with Investex. Please go ahead.

Operator 2: Thank you. Your next question comes from the line of Harit Kapoor with Investec. Please go ahead.

Operator: Thank you. Your next question comes from the line of Harit Kapoor with Investec. Please go ahead.

Speaker #7: Yeah. Hi. Good evening. so first question is on exchange. So, if you could just give a broad breakup of, of how much exchange share in procurement has gone up, this quarter, I would assume it would have peaked in this quarter because of the situation.

Harit Kapoor: Yeah, good evening. First question is on exchange. If you could just give a broad breakup of how much exchange share in procurement has gone up this quarter. I would assume it would have peaked in this quarter because of the situation. Just some sense versus Q1 last year, and have you seen some basis points impact on margin on account of that as well? That's my first question.

Speaker #7: So just some sense versus Q1 last year. And, and, and, and have you seen, you know, some basis points impact on margin on account of that as well?

Speaker #7: question. Okay. So specifically on exchange, I think it's been a creeping increase you know, from the time that we've been investing significantly behind exchange.

Arun Narayan: Okay. Specifically on exchange, I think it's been a creeping increase from the time that we've been investing significantly behind exchange, since I think September of last year. During, post the PM's call out, when we went into a bit of an overdrive on our exchange communication, and we also saw other jewelers jump onto that bandwagon. We did see an upswing for that period of about three weeks. It has again got normalized since then. Exchange continues to be a big driver of customer acquisition and a big driver of growth for us. Like we have said in the past, the sale that comes from exchange, both the exchange of old gold bought elsewhere and the gold bought at Tanishq exceeds 50% of the business. That's a trend that is sustaining. Yes, you're right.

Speaker #7: Since I think September, of last year, but, during you know, when the, post the PMs callout when we went into a bit of an overdrive on our exchange communication and we also saw other jewelers jump onto that bandwagon.

Speaker #7: We did see, an upswing for that period of about three weeks. But then it has again got, normalized since then. So exchange continues to be a big driver of customer acquisition and a big driver of growth for us.

Speaker #7: And like we have said in the past, the sale that comes from exchange, both the exchange of old gold bought elsewhere and the, gold bought at Tanish exceeds 50%, you know, of our, of the business.

Speaker #7: So that, that's a trend that is sustaining. But yes, you're right. When everyone went onto an overdrive during those three weeks in May, the share did, go up.

Arun Narayan: When everyone went onto an overdrive during those 3 weeks in May, the share did go up. Thereafter, I would say it is pretty much normalized.

Speaker #7: But thereafter, I would say it is pretty much normalized. Got it. So, that could have a slight marginal basis point sequential improvement over the next three quarters, right? Given that May might have been slightly low gross margin for you, just because of the nature of procurement.

Harit Kapoor: Got it. That could have a slight marginal basis point sequential improvement over the next 3 quarters, right? Given that May might have been slightly lower gross margin for you just because of the nature of procurement. Is that the right way to think about it?

Speaker #7: Is, is that right way to think about it? No. I, I don't think you should read anything specific into that. I would urge you all not to, read anything specific into that.

Arun Narayan: No, I don't think you should read anything specific into that. I would urge you all not to read anything specific into that.

Speaker #7: Got it. Got it. And, and the second, you know, question was on the two subsidiaries, Peel and Carrot Lane. Now, you did give some, you know, estimates for the four-year period, but, you know, the start of that four-year period, especially on margins on both Peel and Carrot Lane have been, you know, significant, you know, significant.

Harit Kapoor: Got it. The second question was on the 2 subsidiaries, TEAL and CaratLane. Now, you did give some estimates for the 4-year period. The start of that 4-year period, especially on margins on both TEAL and CaratLane have been significant. Just wanted to get your sense of, is TEAL a more kind of revenue booking situation led margin improvement and even for CaratLane, are these numbers surprising you on the operating leverage that you're getting?

Speaker #7: so just wanted to, you know, get your sense of, you know, i-is, is Peel a more kind of, you know, revenue-booking, you know, situation-led, you know, margin improvement and, and, and even for Carrot Lane, I mean, are these numbers surprising you on the operating leverage that you're getting?

Speaker #8: So on Peel, as it first answered, Peel is still remains a project kind of business, you know, and where certain lumpiness do come with the margin.

Ashok Sonthalia: On TEAL, as a first answer, TEAL still remains a project kind of business, where certain lumpiness do come within margin. In this quarter, we did lot of, I would say, the servicing business of certain set of equipment, which we call refitting or retrofitting, where they are in the nature of service where your engineers only go and look at. That was quite substantial. Overall long-term growth TEAL is on a very strong wicket, but the normalized margin would be gradually gravitating towards 12% to 16%. This year, full year basis, they can be higher, but that's the trend I see. Mid- to long-term, you see that kind of business they will deliver. As far as CaratLane is concerned, we have always said they will gradually go towards double-digit EBIT margins, more like Tanishq kind of margin portfolio. It has gone out. Now it's there.

Speaker #8: And in this quarter, we did lot of, I would say, in a way, servicing business of certain set of equipment which we call refitting or retrofitting.

Speaker #8: Where, you know, they are in the nature of service where you are engineers only work and you get. So that was quite substantial. overall, long-term, growth, Peel is on a very strong wicket.

Speaker #8: But the normalized margin would be, you know, gradually gravitating towards, 12 to 15 percent, 16 percent. This year fully at basis, they can be higher, but that's the trend I see, if mid to long-term, you see that kind of business.

Speaker #8: They will deliver. As far as CaratLane is concerned, we have always said that they will gradually go towards double-digit EBIT margins, more like Tanishq kind of market.

Speaker #8: Portfolio. It's there. Okay. So, so they have delivered 9.6, I think, and something like that, 9% upward. So we are normal trajectory should be towards 10%.

Ashok Sonthalia: Okay. They have delivered 9.6%, I think something like that, 9% or so. Their normal trajectory should be towards 10%. Again, quarter-to-quarter differences can be there, but they should eventually become very stabilized around that number, to my mind. In the long term, even depending on how the jewellery industry gold price dynamics work out, they can either progress towards 11% or stay around that number. It's very difficult to talk about so much into future, but we have always thought that CaratLane should trend towards double-digit EBIT margin.

Speaker #8: Again, quarter to quarter differences can be there, but they should eventually become very stabilized around that number, to my mind. And in the long-term event, depending on how the jewelry industry gold price dynamics work out, they can either progress towards the 11% or stay around that number.

Speaker #8: But, but, you know, it's very difficult to talk about so much into future, but we have always thought that Carrot Lane should finish towards double-digit EBIT margins.

Speaker #7: Yeah. I wanted to also add, both the subsidiaries are still on a significant growth path. Okay. And the opportunity to grow is significant and substantial.

Ajoy Chawla: Yeah, I wanted to also add, both these subsidiaries are still on a significant growth path. Okay? The opportunity to grow is significant and substantial, we will continue to prioritize top-line growth in both of them. Therefore, margins will kind of play out the way they have to play out. Therefore, I would read more in the growth story rather than on the margin story.

Speaker #7: And we will continue to prioritize top-line growth in both of them. Therefore, margins will kind of play out the way they have to play out.

Speaker #7: And, therefore, I would read more on the growth story rather than on the margin story. Right. Right. I wish you all the best. Thank you.

Harit Kapoor: Very clear. Wish you all the best. Thank you.

Speaker #1: Thank you. The next question comes from the line of Ashish Kanodia with Citi, please go ahead.

Operator 2: Thank you. The next question comes from the line of Ashish Kanodia with Citi. Please go ahead.

Operator: Thank you. The next question comes from the line of Ashish Kanodia with Citi. Please go ahead.

Speaker #2: Oh, no. Thank you, sir. First question was, you know, given, the volatility in gold price, what has been the trend for a new sign-ups for both golden harvest team and, river golden advantage in the last, five, six months?

Ashish Kanodia: Yeah. Thank you, sir. First question was, given the volatility in gold price, what has been the trend for new signups for both Golden Harvest scheme and Rivaah Golden Advantage in the last 5, 6 months? Are they broadly tracking in line with the kind of jewellery growth you are seeing?

Speaker #2: are they broadly tracking in line with the kind of jewelry growth, you-you are seeing?

Speaker #7: Yeah. Thanks for that question. I think on a, you know, on a value basis, we are tracking. but, I would say that, we started with the golden harvest program many years back.

Ashok Sonthalia: Yeah. Thanks for that question. I think on a value basis, we are tracking. I would say that we started with the Golden Harvest program many years back. Two, three years back, we added Golden Advantage. What's really happening is the dynamic between the 2, where we are seeing most customers prefer Rivaah Golden Advantage because it helps in the rupee cost averaging. We're seeing a shift of preference from Golden Harvest to Rivaah Golden Advantage, which in a sense is good for the customer, and was also introduced to solve the problem of gold rates being either increasing or kind of moving up and down. That's really the dynamic that is playing out there.

Speaker #7: Then, two or three years back, we added Golden Advantage. What's really happening is the dynamic between the two, where we are seeing most customers prefer River Golden Advantage because it helps, you know, in the rupee cost averaging.

Speaker #7: And we are seeing a shift of preference from Golden Harvest to River Golden Advantage, which in a sense is good for the customer and was also introduced to solve the problem of gold rates either increasing or kind of moving up and down.

Speaker #7: So that's that's really the dynamic that, is playing out there. But on the whole, I think it's, it's progressing in line with the business on a value basis in terms of, the growth and redemption of, both these programs versus the growth in business.

Ashok Sonthalia: On the whole, I think it's progressing in line with the business on a value basis in terms of the growth in redemption of both these programs versus the growth in business.

Speaker #2: sure. the second question was, o-on just on the, you know, the way we have seen, 1Q and even if you look at 4Q, I think, 1Q definitely saw a moderation in, coins growth and, when we look at plain gold and both studied, the growth was still, in line with what was in 4Q despite, volatile gold price and, you know, May, June, other parts, etc., and, to that extent, you know, are you seeing more, you know, beca and given, you know, maybe the gold price, h-has been on a downward trajectory, so are you seeing that gold coin demand is actually now losing more tracks?

Ashish Kanodia: Sure. The second question was just on the way we have seen Q1 and even if you look at Q4, I think Q1 definitely saw a moderation in coins growth. When you look at plain gold and both studied, the growth was still in line with what was in Q4 despite a volatile gold price and May, June, Adhik Mas, et cetera. To that extent, are you seeing more, and given maybe the gold price has been on a downward trajectory, are you seeing that gold coin demand is actually now losing more traction, while it may still be growing faster than the jewelry growth, but losing traction versus what it was doing two, three quarters back? To that extent, it should ideally help with slightly better mix and margins?

Speaker #2: And while it may still be growing faster than the jewelry growth, it's losing traction versus what it was doing two or three quarters back.

Speaker #2: And to that extent, it should ideally help with a slightly better mix and margins.

Speaker #8: That is what we expect, but you see, concluding that the gold price is on a downward trajectory would be too premature in my mind.

Ashok Sonthalia: That is what we expect. You see gold price concluding that it is on a downward trajectory will be too premature to my mind. Last two, three days, if anything is to be seen, again, they have started inching up. If geopolitics normalize, I would believe gold prices can again go up for some time then. To your point, yeah, the kind of growth Y-O-Y coin was showing, it should start moderating from here.

Speaker #8: Last two, three days, if anything is to be seen, again they have started inching up. If this geopolitics normalizes, I would believe gold prices can again go up for the time being.

Speaker #8: But two, two, three—third point—yeah, the kind of growth year-on-year Coin was showing, it should start moderating.

Speaker #2: Sure. And just one last bit, I think Ajay talked about the gross margin expansion initiative. Over the last few years, on the margins, you have taken various initiatives—'war on bears,' and then, you know, working on alloys.

Ashish Kanodia: Sure. Just last bit, I think Ajay talked about the gross margin expansion initiative and over the last few years-

Ashish Kanodia: on the margins you had taken various initiative, war on waste, and then working on alloy. Anything which you'd like to share on the gross margin expansion, like what initiatives we are taking?

Speaker #2: So, anything which, you'd like to share, on the gross margin expansion, like what initiatives, we are taking?

Speaker #8: No, I don't think we are going into that much detail, but suffice to say whatever has been spoken about lower carotides, very reducing max program, there are sourcing strategies etc.

Ashok Sonthalia: No, I don't think we are going into that much detail. Suffice to say, whatever had been spoken about lower tariff rates, there is a GC Max program, there are sourcing strategies, et cetera. It's a mix of various things. We certainly don't want to give more detail on this.

Speaker #8: It's a mix of various things. We certainly don't want to give more detail on this.

Ashish Kanodia: Sure. Just last bit on the natural diamond prices, at least on the retail part in India, what has been the trend? Is it more stable both for smaller stones and as well as for solitaires? Are they stabilized in the last six months? Natural diamond prices.

Speaker #2: sure, sure. And just last bit on the natural diamond prices, at least, on the retail, p-part in India, what has been the trend? Is it more stable both for smaller stones and as well as for, solitaires?

Speaker #2: Are they stabilized in the last, six months?

Speaker #8: That's the natural diamond prices. Pricing exactly—on the… no, yeah, we have seen more stability, perhaps, in the pricing—both of solitaires as well as small diamonds.

Ajoy Chawla: Pricing.

Ashish Kanodia: Pricing.

Ajoy Chawla: Yeah, we have seen more stability perhaps in the pricing, both of solitaires as well as small diamonds. Was that the question, or did I miss answering?

Speaker #8: Was that the question, or did I miss answering?

Speaker #2: no, yeah, my, my question was on the on the retail part or, or not more from sourcing, but at least at the retail and at the consumer end, consumer end?

Ashish Kanodia: My question was on the retail part, not more from sourcing, but at least at the retail end, at the consumer end.

Ajoy Chawla: Retail also. Our prices are stable. Yeah, for both.

Speaker #8: Retail, retail also. We have been we have, prices are stable. yeah, for both. I think maybe the intent of your question could be how is that playing out vis-à-vis the lab-grown diamond and how's the narrative playing out in the mind of the customer?

Ashish Kanodia: Sure.

Ajoy Chawla: I think maybe the intent of your question could be how is that playing out vis-a-vis the lab-grown diamond, and how is the narrative playing out in the mind of the customer? I think at the market level, it has stabilized, and that narrative which was very prominent towards lab-grown and natural are going on, that narrative seems to have gone down substantially. I think both exist in the market. Maybe that's the sentiment behind your question I was picking up.

Speaker #8: I think at the market level, it has stabilized. And that narrative, which was very prominent towards lab-grown and natural are going up, that narrative seems to have gone down substantially.

Speaker #8: And I think both exist in the market. Maybe that's the sentiment behind your question. I was picking up.

Speaker #2: Yes, I because studied, we have seen improving, so tha-that's helpful. Yeah. Thank you.

Ashish Kanodia: Yes, because studded we have seen improving. That's helpful. Yeah. Thank you.

Speaker #8: Yeah, pricing is stable and the narrative and sentiment are also stable.

Ajoy Chawla: Yeah. Pricing is stable. Narrative and sentiment is also stable.

Speaker #2: Sure. Sure. Thank you.

Ashish Kanodia: Sure.

Speaker #1: Thank you. Ladies and gentlemen, we will take this as our last question for today. I now have the conference over to Mr. Chawla for closing comments.

Operator 2: Thank you. Ladies and gentlemen, we will take this as our last question for today. I now hand the conference over to Mr. Chawla for closing comments.

Operator: Thank you. Ladies and gentlemen, we will take this as our last question for today. I now hand the conference over to Mr. Chawla for closing comments.

Speaker #7: Yeah, thanks. interesting set of questions that, keep us on our toes and thinking of our feet literally. just wanted to end at a very broad level some comments, I think all are brands and businesses when you look at jewelry, watches, you look at our subsidiaries, look at carrot lane, look at teal, look at, fragrances and bags.

Ajoy Chawla: Thanks. Interesting set of questions that keep us on our toes and thinking, off our feet literally. Just wanted to end at a very broad level, some comments. I think all our brands and businesses, when you look at jewellery, watches, you look at our subsidiaries, look at CaratLane, look at Taneira, look at fragrances and bags. Pretty much all our businesses have done well. The growth, what we have seen in Q1, and we are also seeing that July also is not bad. I'm seeing a certain positivity so far in the last four months. How things play out in the near future, of course, will depend on so many other forces.

Speaker #7: Pretty much all our businesses have done well. And the growth, what we have seen in quarter one and we are also seeing that July also is not bad, you know.

Speaker #7: So, I'm seeing a certain positivity so far in the last four months. How things play out in the near future, of course, will depend on so many other forces.

Speaker #7: We think we are on trajectory for delivering the kind of growth that we had promised on Investor Day, and we hope that we can, in fact, better it in the current year because we've started very well.

Ajoy Chawla: We think we are on trajectory for delivering the kind of growth that we had promised in the investor day, and we hope that we can in fact better it in the current year because we've started very well. Second comment I want to make is, there was a lot of questions on the dynamic between buyer, gold price, and all of that. I think overall, we are committed to, I'm just reiterating, we are committed to a double-digit healthy growth in value in the jewellery business. That's the only way we get to our committed FY30 goals that we've said. In a particular quarter or in two quarters, it may be looking like a power play where we hit the ball out of the park. It's not just us. The market also has done very well. I wouldn't get too carried away by that.

Speaker #7: Second comment I want to make is, there were a lot of questions on the dynamic between buyers, gold, gold price, and all of that.

Speaker #7: I think overall we have committed to and this reiterating and we are committed to a double-digit healthy growth in value. In the jewelry business, so that's the only way we'll get to our committed FY30 goals that we've set.

Speaker #7: In a particular quarter or in two quarters, we might it may be looking like a power play, but we've hit the ball out of the park.

Speaker #7: Or but it's not just us. The market also has done very well. I wouldn't get too carried away by that. Neither will I get too carried away by a particular quarter if, you know, there is some volatility and some fluctuation in the market due to external forces or gold price.

Ajoy Chawla: Neither will I get too carried away by a particular quarter if there is some volatility and some fluctuation in the market due to external forces or gold price. I think the larger piece I would like to maybe direct all of us towards is that the headroom for growth for all our businesses is very high. Partly because of the tailwinds of formalization, partly to a large extent because of India growth story, middle India, multiple segments, portfolio play, and all of those. This is true for jewellery, this is true for eye care, this is true for watches, this is true for fragrances, bags, sarees, all of them. We have both headroom for market share gain as well as India doing very well, many segments coming into the consumption basket and the premiumization story. All the five, six, seven forces that we talked about when we met.

Speaker #7: I think the larger piece I would like to, maybe, you know, direct all of us to is that the headroom for growth for all our businesses is very high.

Speaker #7: Partly because of the tailwinds of formalization, and to a large extent because of the India growth story, Middle India, multiple segments, portfolio play, and all of those.

Speaker #7: And this is true for jewelry. This is true for eye care. This is true for watches. This is true for true for fragrances, bags, sarees, all of them.

Speaker #7: We have both headroom for market share gain as, as well as India doing very well. Many segments coming into the consumption basket. And the premiumization story, all the five, six, seven forces that we talked about, when we met.

Speaker #7: Specifically on jewelry, I would reiterate that our growth drivers on gaining market share through regionalization, through high-value studied, through retail transformation, through brand differentiation, through portfolio play, and through core growth, in, in both studied and gold in the sub-50, sub-1 lakh kind of price points through buyer growth.

Ajoy Chawla: Specifically on jewellery, I would reiterate there are growth drivers on gaining market share through regionalization, through high-value studded, through retail transformation, through brand differentiation, through portfolio play, and through core growth, in both studded and gold in the sub 50s, sub INR 1 lakh kind of price points through buyer growth. All those growth levers continue to hold good, and we stay focused on the long-term strategy and value creation while taking in our stride some positives that we might have received in a couple of quarters and building on them rather than getting worried about whether we can deliver the same levels of growth. Just wanted to direct everybody's attention to a larger story and not maybe getting too carried away by one quarter or the other. Margins will play out the way we have spoken. If we are lucky, we can do even better.

Speaker #7: All those growth levers continue to hold good. And we stay focused on the long-term strategy and value creation. While taking in our pride, some positives that we might have received in a couple of quarters and building on them rather than getting worried about whether we can deliver the same levels of growth.

Speaker #7: So just wanted to kind of direct everybody's attention to a larger story and not maybe getting too carried away by one quarter or the other.

Speaker #7: Margins will play out the way we have spoken. If we are lucky, we can do even better. But thank you so much for all your questions and, look forward to catching up with you once again next quarter.

Ajoy Chawla: Thank you so much for all your questions, and look forward to catching up with you once again next quarter. Bye.

Speaker #7: Bye.

Speaker #2: Thank you.

Ashish Kanodia: Thank you.

Speaker #1: Thank you, members of the management. On behalf of Titan Company Limited, that concludes this conference. Thank you, everyone, for joining us and you may now disconnect your lines.

Operator 2: Thank you, members of the management. On behalf of Titan Company Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you, members of the management. On behalf of Titan Company Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Titan Co Ltd Earnings Call

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Titan Company

Earnings