Titan Q1 Results: Net profit slips 2% YoY to Rs 777 crore, misses estimates

Titan Company Q1 Results: Titan Company on Wednesday reported a 2 per cent year-on-year (YoY) decline in its standalone net profit at Rs 777 crore for the quarter ended June 30, 2023 (Q1FY24). The company had posted a profit of Rs 793 crore in the year-ago period. Its total income grew 19 per cent YoY to Rs 10,306 crore. EBIT slipped 2 per cent YoY to Rs 1,103 crore. In the year-ago period, the figure stood at Rs 1,121 crore. EBIT margin saw a decline of 226 basis points to 10.7 per cent. 

The bottom line and top line was below Zee Business analysts' estimates. The research desk had projected Titan to report a standalone net profit of Rs 873 crore for a three-month period. The revenue for the three-month period was expected to come in at Rs 10,753 crore, as against Rs 8,961 crore logged in the corresponding quarter of the previous fiscal.

Commenting on the results, CK Venkataraman, Managing Director of the company stated, "The year has started well for us with double-digit revenue growth across business segments. The Jewellery business remained the star performer with a 19% growth on a YoY basis. We are pursuing market share gain across categories and investing in various capabilities and retail network expansion. Our international foray is also shaping up well. We remain optimistic about our performance for the rest of the financial year."

Titan Company: Segment-wise performance

Jewellery: Total Income of Rs 9,070 crore recorded an increase of 19 per cent compared to Q1FY23. The Indian business grew by 20 per cent in the same period, driven by healthy demand during Akshaya Tritiya and an attractive gold exchange programme. The buyer growth was 14 per cent and the average ticket size moved up by 6 per cent compared to Q1 FY23. The EBIT came in at Rs 999 crore with an 11.0% EBIT margin for Q1FY24, lower than the same period last year due to one-time diamond price inventory gains in Q1 FY23 but normalised in the current quarter, the company said.

Watches & Wearables: The business recorded a total income of Rs 890 crore, up by 13 per cent compared to Q1 FY23, backed by strong growth of 81 per cent in the Wearables segment. The premiumisation theme was at the fore, with Titan and International brands seeing strong buying momentum and clocking handsome double-digit growths in the analogue segment. In wearables, the Fastrack brand grew the fastest, clocking sizeable gains in the portfolio. EBIT came in at Rs 102 crore with an EBIT margin of 11.5 per cent for Q1FY24, the earnings release added.

EyeCare: Total Income of Rs 203 crore was up by 11 per cent compared to Q1FY23. EBIT came in at Rs 35 crore with a 17.2 pe cent EBIT margin for Q1FY24.