Titan Q2 Results: Net Profit Up 9.7%, Margin Takes A Hit
Titan Co.'s profit and revenue rose in the second quarter of fiscal 2024, beating analysts' estimates even as its margin remained under pressure.
The consolidated net profit of the country's largest branded jewellery maker rose 9.7% to Rs 916 crore in the quarter ended September, according to an exchange filing on Wednesday. That compares with the Rs 866.6 crore consensus estimate of analysts tracked by Bloomberg.
Revenue for the owner of the Tanishq brand rose 36.7% to Rs 12,529 crore, as against the Rs 9,772.5 crore forecast.
Titan Q2 FY24 Highlights (Consolidated, YoY)
Operating profit increased 13.2% to Rs 1,411 crore, as against an estimate of Rs 1,273.5 crore.
Margin was at 11.3% versus 13.6% on higher expenses. Analysts had forecast it at 13%.
Segmentwise Highlights (YoY)
Watches and wearables revenue at Rs 1,092 crore, up 31.6%.
Jewellery revenue, excluding bullion sales, at Rs 9,265 crore, up 23.3%.
Eyecare revenue at Rs 189 crore, up 13.2%.
The watches and wearables business crossed quarterly revenue of Rs 1,000 crore, growing 31.6% over the previous year, and faster than Titan's mainstay jewellery business which increased 23.3%. The eyecare division grew 13.2%, driven by the international business.
Revenue of other businesses, including emerging business divisions of Taneira, fragrances and fashion accessories, and the subsidiaries—Titan Engineering and Automation Ltd. and Titan Commodity Trading Ltd.—rose 11.2% during the quarter.
The emerging businesses, however, reported a cumulative loss of Rs 24 crore in Q2.
"All our consumer businesses achieved healthy growth for the quarter," CK Venkataraman, managing director of Titan, said in a statement. "We retain our focus on improving market share by offering differentiated products to our consumers, touching their everyday lives in a meaningful way," he said, adding that the festive season in Q3 has started well.
The Tata Group company opened 68 stores during the quarter, taking the total count to 2,613, as of September this year. The highest number of stores were added for jewellery business at 39, followed by 20 stores for watches and wearables, and five eyecare stores. Four Taneira outlets were also added.
Shares of Titan rose 2.65% at Rs 3,286.4 apiece after the results were declared, as compared with a 0.52% gain in the benchmark NSE Nifty 50.
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