Titan Q1 results preview: PAT likely to grow 10%, margin may slip by 90 bps on high base

Titan Q1 results preview: Titan — a Tata group company that manufactures a range of products including jewellery, watches and eyewear — is scheduled to report its financial results for the April-June period on Wednesday, August 2. Analysts expect Titan — whose popular brands include Fastrack, Sonata, Octane, Tanishq, CaratLane, Zoya and EyePlus — to report a strong quarterly performance driven by robust demand and steady margins across segments.  

According to Zee Business research, Titan is estimated to report a standalone net profit of Rs 873 crore for the first quarter of the current financial year, which translates to a year-on-year increase of 10.1 per cent. The analysts estimate its revenue for the three-month period to come in at Rs 10,753 crore as against Rs 8,961 crore for the corresponding quarter a year ago. 

Zee Business analysts peg Titan's earnings before interest, taxes, depreciation and ammortisation (EBITDA) at Rs 1,302 crore, an 11.9 per cent increase compared with the year-ago period. 

The company's margin — a key measure of a company's profitability — is estimated at 12 per cent for the quarter ended June 2023, as against 12.9 per cent for the quarter ended June 2022, according to the research. 

Analysts will closely track the Titan management's commentary on demand and business outlook.

According to Zee Business research, the company's margin is estimated to be: 

• 13 per cent in jewellery
• 12.3 per cent in watches and wearables
• 12 per cent in eyecare

How Titan performed in Q4

For the final quarter of the financial year 2022-23, Titan reported a 49.5 per cent year-on-year increase in net profit to Rs 734 crore, beating Street estimates. 

Its revenue came in at Rs 9,704 crore for the March quarter, as against Rs 7,276 crore for the corresponding period a year ago, according to a regulatory filing.

The company registered a margin of 11 per cent for the three-month period. 

According to Zee Business research, Titan was estimated to report a net profit of Rs 713 crore, revenue of Rs 9,095 crore and margin of 11 per cent for the March quarter. Read more on Titan Q4 earnings

Titan shares

Titan shares grew 21.2 per cent in the June quarter, sharply outperforming a 10.5 per cent rise in the benchmark Nifty index. 

As of August 1, the Titan stock has added 17 per cent to its value in 2023 so far as against an 8.5 per cent rise in the headline index.

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