The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Avi Mehta - Macquarie Research - Analyst
: Just wanted to understand jewellery EBIT margin a little better. It seems from the 2Q performance that customers are showing an increased
preference for new launches because we've seen wedding share rising, studded mix lower than 2Q FY '20, but EBITDA margin jewellery is still higher
than what we saw into 2Q FY '20 adjusted for obviously be bullion sales. If that understanding is correct, a, could you kind of help explain that; b,
if that is the case, does that imply that as we move towards a normalization you should see margins probably closing or trending higher than the
pre-pandemic levels of 12.5%.
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OCTOBER 27, 2021 / 12:00PM, TITN.NS - Q2 2022 Titan Company Ltd Earnings Call
Question: Avi Mehta - Macquarie Research - Analyst
: No. What I mean by newness is that given that when you pay extra, essentially you're paying for the design aspect that Tanishq brings to the table,
which is what you are highlighting that it has got to do with people willing to pay. And if people are doing that, I mean when we exited FY '20, we
were actually trending at a higher-margin trajectory than what the full year implied. So would that be fair to say that full year FY '20 is not -- we
should probably -- as things normalize, we should probably close at a higher level?
Question: Avi Mehta - Macquarie Research - Analyst
: So 2Q FY '20 margins were around 11%, sir, and studded share was around 38%. We are at 30% into 2Q FY '22, and margins are at 13% in the
jewellery segment. In that context, and I'm again removing the bullion assuming there's not any large contribution from bullion sales.
Question: Avi Mehta - Macquarie Research - Analyst
: Okay. So -- okay. Okay. Fair enough. Sir, the second bit I wanted to kind of just get is if you could give us any sense on -- given that watch is -- watch
business is obviously on scale benefits has started to move back on the margin trajectory, any guidance on where do you see this trending any --
for the full year or more importantly, for FY '23? What would you target?
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