Titan Q3 Results Preview: Net profit likely to grow 2% amid margin pressure

Titan Company – a Tata group maker of jewellery, watches and eyewear – is likely to report a two per cent increase in net profit to Rs 1,004 crore for the October-December period, according to Zee Business research. The company is scheduled to report its financial results for the third quarter of the current financial year on February 2.

Titan’s revenue is expected to expand 11.7 per cent to Rs 10,631 crore for the three-month period compared with the corresponding period a year ago, according to the research.

The analysts peg the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) at Rs 1,439 crore, up three per cent on a year-on-year basis. They expect the company's margin for the three-month period to be under pressure owing to a one-time gain in the base. 

According to Zee Business research, Titan’s margin – a key measure of profitability – is estimated to decline by 120 basis points on a year-on-year basis to 13.5 per cent. The EBIT margins for the company's three main segments are estimated to be in the tune of 13.4-15.5 per cent.

Investors will look out for any details on store expansion and its international business. 

According to the company's business update for the quarter ended December 2022, the company reported a 12 per cent year-on-year increase in total sales with double-digit growth across segments. 

Sales growth stood at 11 per cent in jewellery, 14 per cent in watches and 10 per cent in eyewear, according to the business update.