Jewellery Push
Titan Co's net profit for Apr-Jun exceeds Street's estimates
This story was originally published at 20:51 IST on 2 August 2024
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MUMBAI – Titan Co Ltd's net profit for the June quarter fell nearly 1% on year to 7.7 bln rupees, but surpassed analysts' average estimate of 7.50 bln rupees. The fall in Apr-Jun net profit was due to a hit to the company's operating margins on account of high gold prices, election-led restrictions, and a subdued wedding season.
The company's revenue from operations rose over 8% from a year ago to 120.53 bln rupees for the June quarter. Analysts had expected a topline of 121.81 bln rupees.
Titan's earnings before interest and taxes for the reporting quarter came in at 12.03 bln rupees, higher than the 11.03 bln rupees reported a year ago. The company's EBIT margin, however, declined 2 basis points on year to 10.7%.
The jewellery business, which accounts for almost 88.9% of the company's revenue, saw a rise of 9% in sales to 98.79 bln rupees. The earnings before interest, and tax for the jewellery business in the quarter grew 10.4% to 11.03 bln rupees. However, its EBIT margin expanded nominally to 11.2% from 11.0% a year ago.
Sales from the watches and wearables segment rose 14.7% on year to 10.21 bln rupees during Apr-Jun. The segment's EBIT margin declined 20 bps on year to 11.3%.
The company's sales from the eyecare business improved 3% from a year ago to 2.1 bln rupees for the June quarter. The EBIT margin for the vertical came in at 9.6%, sharply lower than 17.2% a year ago.
Its overall expenses rose 9.1% on year to 111.5 bln rupees. Its material and component cost jumped 43.2% on year to 94.12 bln rupees. Titan's finance cost increased to 1.8 bln rupees for Apr-Jun from 790 mln rupees a year ago.
The tax outgo during the quarter was 2.51 bln rupees, as compared with 2.47 bln a year ago. Today, its shares closed 0.2% lower at 3,462.35 rupees. End
Reported by Anshul Choudhary and Apoorva Choubey
Edited by Deepshikha Bhardwaj
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