Timex Group India Ltd (TIMEX) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day, and welcome to the Q2 earnings call hosted by Timex Group India Limited. 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. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. From the company, we have Mr. Deepak Chhabra, Managing Director, Mr. Amit Jain, CFO, and Mr. Dhiraj Kumar Maggo, Company Secretary. I now hand the conference over to Mr. Deepak Chhabra, Managing Director of Timex Group India Limited. Thank you, and over to you, sir.
Deepak Chhabra (Timex Group India Ltd): Good evening, everyone. for joining us today for investors call regarding quarter two results which we announced yesterday. So, I'll take this opportunity to share with you the key highlights. And of course, you know, post that we'll open it up for question and answers, and I'll be happy to take any and all questions you you may have, basis our announcement yesterday for H1 result as well as quarter two results. So, this quarter, which is Q2, has been the biggest quarter for the company in the in our history of 35-36 years, wherein we did about 359 crores of revenue, which is about 47% growth over last year same quarter. This also is a record quarter for our EBITDA, which stood at about 66 crores and it is 54% increase over last year same quarter. And the same thing flew to PBT, which, you know, which grew at 57% and in value term, 64 crores. On the channel side, if I have to speak, you know,
Deepak Chhabra (Timex Group India Ltd): e-commerce continues its you know, fantastic growth, and it grew at 75% for the quarter. While, as I mentioned, we grew at 47, so, e-commerce is a positive outlier. Especially, keeping in mind, you know, the e-commerce generally operates ahead of the festive season with their events, and this generally is the case in quarter two. And the same thing happened this year, but we did way better than last couple of years, and grew at 75%. Also to you know, share with you all, e-commerce is like four sub-channels we have. We do have We do have 1P, which is buy and sell model, which happens to be the biggest channel in e-commerce, which essentially happens with the three portals led by Flipkart, followed by Myntra and Amazon. And then we are also growing our 3P channel, which is market places, and latest entrant I won't say latest, it is there for about 1 and 1/2 years, is quick commerce. Quick commerce all these three channels all these three portals have their quick commerce, plus there is Blinkit, Swiggy Instamart as well as Zepto. We are live in all six of them. And then the fourth sub-channel is our dot coms, which essentially operate two of them, rather I should say three of them. We have timex.com, we have helix.com and we have justwatches.com. So, that's about e-commerce. While our trade channel, which is our legacy channel which which we serve through distributors as well as direct dealers. The large chain stores are served directly by by our teams commercially, wherein distributors serve the smaller retailers. That also grew at 34%, and on a on a pretty old channel, that's a real good good growth. And as I mentioned, e-commerce operates a bit ahead in the season, and offline operates a bit later. So, that impact should also be considered in quarter two, which largely means quarter three generally is heavy on offline versus quarter two. Our exclusive retail channel, although it's a bit small one, but it's a strategic channel for us, has shown a very strong growth of 48%. We added a Actually, we added about four stores in this quarter, and this addition is the highest in the last few quarters. We We were stabilizing our channel, but now we have started expanding. As I mentioned in my earlier discussions that we have intentions to open 200, 200 plus stores over the next 3 years across two formats, which is Just Watches as well as Timex World. All other channels, which are smaller in nature, have also grown in high double-digit. Talking about the brand performance, of course, you know, we largely take three brands which are strategic for us and has the maximum growth potential, which is Timex, Guess and Versace. And all of them have done amazingly good. While the company grew at 47%, Timex actually has grown at 67%, and Guess has grown at 57%. So, both these brands, which are number one and number two brand in our portfolio, have grown higher than the company's growth, which largely talks about that we are building where we really want to build business rather than, you know, non-strategic you know, brands. Aston Martin, which we launched last year in November, we are expanding it very, very fast. This quarter saw addition of about 40 new doors, taking the total point of sale for Aston Martin to 100 doors. And then this also saw a lot of new products introduction during the quarter across all our franchise, global as well as India franchise. Franchise, largely, I mean, collections. Yeah, we have three global franchise, which is Waterbury, Q and Marlin. And we have three local franchise, which is Fria, Cigne and Vector. So, there were new launches across all the six segments. And Guess, of course, you know we brought a lot of newness, and in GC, we also launched, GC is actually a brand from the Guess portfolio, which is called Guess Collection, we also launched Swiss watches for the first time. On the marketing front, a lot has happened. In fact, this quarter we announced two celebrity endorsement and launched them during this quarter. Tamannaah Bhatia for Guess and Malaika Arora for Versace. Celebrity endorsement for Timex is taking some time, but we do have plans to launch a celebrity endorsement for Timex also.
Deepak Chhabra (Timex Group India Ltd): one is going to be big one. In addition, we also you know, participated in a lot of fashion events and sporting events during this quarter. We participated in you know Times of India, Delhi Times Fashion Week. We also sponsored you know, IPL equivalent in table tennis called UTT, which also happened during the same period. And we were also, you know, awarded a lot of awards during this quarter. So, one of the big one was we were awarded as Watch Brand of the Year by Myntra during their Tech Threads. We were also awarded Best Fashion Brand by Economic Times and you know, the Best Brand in risk management by CNBC TV18. So, that's briefly about how the quarter was, and I'll be happy to take any questions which you may have.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Tushar Khurana from Prime Securities. Please go ahead.
Tushar Khurana (Prime Securities): Yeah, hi. Am I audible?
Moderator: Yes, sir.
Deepak Chhabra (Timex Group India Ltd): Yeah, Tushar, we can hear you.
Tushar Khurana (Prime Securities): Yes. Thank you for the opportunity and, firstly, congratulations to the entire team of Timex for such great results. Sir, I'll, I'll ask all my questions in one go. So, how, how should we look at this inventory of 368 crore? Should we be excited about it given that we have a delayed festive season by one month, and that's why we have been deliberating having this kind of inventory? And, in order to achieve that, did we also operate in double shifts in, in many of last 3 months if if you can comment on that. And then, my other question is, sir, I just want to know that last 12 months sales for Timex and Guess brand. And, and if I were to ask you, what is the third brand that we would want to focus on where we could also, you know, scale it up to as big as Timex or Guess in the medium to longer term, catering to masses, especially, not on the premium side? And, lastly, sir, on the retail expansion, you are saying you have a target of having some 200 stores in next 2 to 3 years. If I were to ask you, since we are going to start this next year, I understand. So, how many stores are we planning to open in year 2027? And that's, that's all from my side, sir.
Deepak Chhabra (Timex Group India Ltd): Thank you, Tushar. I'll, I'll, I'll start with your inventory question. You know, as I have mentioned in my previous calls also, we, if you see higher inventory, be ready for a good quarter. Yeah. So, we largely are investing our free cash on inventory to ensure we do not lose any opportunity for sales. Yeah. And that has been the, that has been the trend for the last 2, 2.5 years. We are cautiously courageous there. We ensure that what we build is our core style. So, in case the sales momentum doesn't come to our expectation, we are not stuck with the inventory. It is It's It's probably, you know, it may It may last a bit longer rather than leading to obsolescence. So, all inventory investments are largely done on our top sellers and to ensure that we give the best opportunity to our sales team to overdeliver the, the numbers. And this inventory what you see is in line with our strategy of being cautiously courageous. Having said that, you know, we do taper down our inventory at the calendar year-end and because of the largely the phasing of business by quarters. And then, we ramp it up again around you know, around February. So, this also will be the case safe for the for, for this year as well. So, this happens to be, if you see our data for the last 3-4 years, you will always find quarter
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