Tata group-backed Titan Company Ltd reported a 25% fall in standalone profit at ₹705 crore for the quarter ending September 30, 2024, compared to ₹940 crore profit in the year-ago period, primarily due to a weak demand in its studded jewellery business.
The jeweller and watchmaker, in an exchange filing today, said revenue in the second quarter of FY25 grew 24.2% to ₹12,458 crore from ₹10,027 crore in the year-ago period. The company's earnings before interest and tax fell 17.5% to ₹1,128 crore from ₹1,367 crore in the year-ago period.
The consolidated profit fell 23.1% to ₹704 crore from ₹916 crore in the year-ago period, while the consolidated revenue surged 26% to ₹13,660 crore from ₹10,837 crore in the year-ago period.
Titan MD C.K. Venkataraman says after a muted Q1, Q2 saw jewellery clocking double-digit growth. On account of the customs duty-related losses, as well as the need to invest in the growth of various businesses, the profitability of Q2 was "quite depressed", he says. "We are quite confident about the competitiveness of each of our businesses and remain optimistic about our performance for the rest of the financial year."
In jewellery, Titan's income for the quarter grew 26% over Q2FY24 to ₹10,763 crore. EBIT at ₹932 crore came at a margin of 8.7% for the quarter. The company says the custom duty reduction saw a revival in consumer interest as gold prices cooled off temporarily. "The ensuing gold rush lasted well into mid-September. Buyer growth was accompanied by an increase in average selling prices, both exhibiting double-digit growths."
During the quarter, in India, Titan brands Tanishq opened 11 new stores (net), Mia added 12 and Zoya added 1 store, respectively. In watches & wearables, Titan's income grew to ₹1,301 crore, up 19% over Q2FY24, while EBIT came in at ₹194 crore, a margin of 14.9% for the quarter.
The company says its analogue segment recorded a 26% revenue growth YoY, led by the Titan brand at 32% growth. However, Titan's wearables segment saw a 13% drop in revenue compared to Q2FY24, primarily due to a cut in average selling prices.
In EyeCare, Titan's income stood at ₹201 crore, up 7% over the same period last year. But sunglasses recorded a volume decline due to seasonality, says the company, adding that international brand sales recorded 53% growth over Q2FY24.
In emerging businesses, Titan says Indian dress wear ('Taneira'), fragrances, and fashion accessories (F&FA) reported ₹106 crore income for Q2FY25, up 14% over Q2 FY24. Taneira's sales grew 12% YoY, driven by growth from new stores, SKINN grew 19% and Women's Bags (IRTH & Fastrack) grew 76%, over Q2FY24. The emerging businesses recorded a total loss of ₹29 crore for the quarter.
In international business, Tita's income grew 62% to ₹273 crore compared to Q2FY24. Among subsidiaries, Caratlane's income grew 28% to ₹829 crore compared to Q2 FY24 (excluding bullion and digi-gold sales). EBIT came in at ₹58 crore, a margin of 7%. Caratlane added 11 new stores (net) in the quarter, taking the total to 286 stores.
Titan Engineering & Automation saw 56% growth in income at ₹196 crore. EBIT for the quarter came in at ₹25 crore, clocking a margin of 12.8%.
