Titan Q3 preview: Tata Group jewel likely to fire on all cylinders

Titan, the Tata Group’s watch-to-jewellery company, is slated to report its December quarter earnings on February 1. Zee Business Research desk estimates standalone net profit for the three months ending December 2023 to rise 22 per cent on-year to Rs 1,157 crore versus Rs 951 crore registered in the corresponding period a year ago.

Standalone revenue of the company during the review period is expected to log a healthy growth of 22 per cent on-year, from Rs 10,875 crore in Q3 FY23 to Rs 13,268 crore in Q3 FY24.

Earnings before interest, tax, depreciation, and amortisation (EBITDA), a profitability metric, are seen rising 25 per cent year-on-year (YoY) to Rs 1,665 crore in comparison to Rs 1,330 crore in the same period last year. While margin is expected to climb 30 basis points YoY to 12.5 per cent in Q3 FY24.

The company’s jewellery business is set to report 23 per cent YoY growth, while margins in the segment are seen at 13 per cent for the quarter ended December 2023.

Q3 business update

In its Q3 business update, the company said that revenue in the jewellery segment rose 21 per cent on year, aided by double-digit buyer growth and moderate improvement in average selling prices.

The company’s watches & wearables (W&W) division's domestic business grew 23 per cent YoY, according to the company’s filing in the update.

The eyecare division, however, logged revenue degrowth of 3 per cent on-year. The company’s emerging businesses registered 24 per cent on-year growth, with Taneira's logging robust revenue growth of 61 per cent on-year.

During Q3, the company opened 90 stores, taking the group's retail presence to 2,949 stores.

Caratlane revenue grew by 31 per cent YoY led by the season's new collections, wedding gifting curations, and the first-ever 'mangalsutra' campaign.