Titan Company Q2 Results: Profit rises 10% YoY to Rs 940 crore, beats estimates

Titan Company Q2 Results: Titan Company reported on Friday, November 3, a 9.6 per cent year-on-year (YoY) rise in its standalone profit after tax (PAT) at Rs 940 crore for the quarter ended September 30, 2023. The company had posted a profit of Rs 857 crore in the year-ago period.

Revenue from operations stood at Rs 9,903 crore, up 21.7 per cent YoY against Rs 8,134 crore in the year-ago period.

The company's earnings before interest and tax (EBIT) for the quarter under review increased 13.44 per cent to Rs 1,367 crore against Rs 1,205 crore logged in the year-ago period. However, EBIT margin decreased 87 basis points (bps) to 13.6 per cent from 14.5 per cent in the corresponding quarter of the previous fiscal.

The numbers beat Zee Business analysts' estimates, as the research desk had estimated the Tata Group company to post standalone revenue of Rs 10,476 crore, up 20 per cent YoY. Net profit, or profit after tax (PAT), was estimated to decline 5 per cent YoY to Rs 815 crore. CLICK HERE TO READ THE RESULTS PREVIEW

Commenting on the results, CK Venkataraman, Managing Director of the Company, stated, "All our consumer businesses achieved healthy growth for the quarter. The Watches and Wearables business crossed quarterly revenues of Rs 1,000+ crore, an important milestone in their journey."

The MD added, "The jewellery business continued to shine, growing nearly 27 per cent in consumer sales over the last year. The store expansions in key markets are progressing well. We retain our focus on improving market share by offering differentiated products to our consumers, touching their everyday lives in a meaningful way. The festive season in Q3 has started well, and we are optimistic for our performance in the rest of the financial year."

Segment-wise Q2 performance

Jewellery: Total income of Rs 8,575 crore recorded an increase of 19 per cent compared to Q2 FY23. The India business grew by 21 per cent in the same period led by the 'Festival of Diamonds' (studded activation), Tales of Mystique collection, Rivaah X Tarun Tahiliani collection, and well-accompanied by regional campaigns. The business witnessed healthy double-digit growth in both buyers and average bill value per buyer during this period. EBIT came in at Rs 1,206 crore, clocking an EBIT margin of 14.1 per cent for Q2 FY24, helped by a better-studded share in the portfolio, the earnings release said.

Watches & Wearables: The business recorded a total income of Rs 1,092 crore, up by 32 per cent compared to Q2 FY23, crossing the Rs 1,000+ crores of quarterly revenues for the first time in its journey. EBIT came in at Rs 160 crore with an EBIT margin of 14.7 per cent for Q2 FY24.

EyeCare: Total income of Rs 188 crore in Q2 FY24 was up by 13 per cent compared to Q2 FY23. EBIT for the business came in at Rs 28 crore, clocking a margin of 14.9 per cent for the quarter, the company said in its earnings release.

Emerging Businesses: Total income of nearly Rs 93 crore for the emerging businesses comprising Fragrances, Fashion Accessories (F&FA), and Indian Dress Wear (Taneira) for Q2 FY24 grew by 27 per cent compared to the same period last year. The F&FA business grew by 4 per cent compared to Q2 FY23. In subsegments, Fragrances grew 12 per cent and Women's Bags, led by the 'IRTH' brand, clocked a healthy 31 per cent growth compared to Q2 FY23. The other fashion accessories business, comprising belts and wallets, was lower by 40 per cent during this same period, the release added.