Titan Q4 results fall short of analysts' expectations; should investors worry?

Titan share price: Titan shares tumbled on Monday after the Tata group jewellery and watch maker staged a largely weak performance for the January-March period, prompting several brokerages to lower their targets for its stock. The stock finished 7.2 per cent lower at Rs 3,281.7 apiece on BSE.

After market hours on Friday, Bengaluru-headquartered Titan—whose popular brands include Fastrack, Sonata, Octane, Tanishq, CaratLane, Zoya and EyePlus—reported a 7.1 per cent year-on-year increase in net profit to Rs 786 crore with 16 per cent growth in revenue to Rs 11,257 crore for the fourth and final quarter of the financial year 2023-24. 

Its quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 6.2 per cent to Rs 1,109 crore but margin contracted by 90 basis points to 9.9 per cent. 

According to Zee Business research, Titan's March-quarter net profit was estimated at Rs 767 crore, revenue at Rs 11,354 crore, EBITDA at Rs 1,177 crore, and margin at 10 per cent.  

The Tata group company's jewellery margin also fell short of expectations and analysts believe it is expected to remain under pressure in the near term amid stiff competition.

Titan's margin from its jewellery business stood at 12.1 per cent. Zee Business analysts had pegged the margin at 12.8 per cent. 

What brokerages make of Titan results

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