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Informist, Thursday, May 8, 2025

 

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--Jan-Mar net profit INR 8.70 bln vs INR 7.86 bln year ago
--Analysts saw Titan Jan-Mar net profit INR 8.20 bln
--FY25 net profit INR 33.35 bln vs INR 35.44 bln year ago
--Jan-Mar revenue INR 134.77 bln vs INR 112.57 bln year ago
--FY25 revenue INR 548.42 bln vs INR 471.14 bln year ago
--To pay INR 11 per share dividend
--Net added 16 stores in India during Jan-Mar
--Jan-Mar EBIT INR 14.11 bln vs INR 11.39 bln year ago
--Jan-Mar EBIT margin 11.10%, unch on year
--Jan-Mar jewellery ops total income INR 112.32 bln vs INR 89.98 bln
--Jan-Mar jewellery ops EBIT margin 11.9% vs 12.1% year ago
--Jan-Mar watches, wearables total income INR 11.26 bln vs INR 9.40 bln
--Jan-Mar watches, wearables EBIT margin 11.8% vs 8.5% year ago
--Jan-Mar India jewellery total income at INR 108.45 bln, up 23% on yr
--Net added 4 Tanishq stores in India during Jan-Mar
--Jan-Mar India gold jewellery sales up on growth in ticket size
--Jan-Mar India studded jewellery sales growth 12% on year
--Jan-Mar jewellery ops same store retail sales growth at 15% on year
--Jan-Mar CaratLane total income at INR 8.83 bln, up 23% on year
--CaratLane net added 17 stores in India during Jan-Mar
--Titan: CEO Ajoy Chawla to be MD from Jan 1, 2026
--Titan: CEO Ajoy Chawla to replace C. K. Venkataraman as co's MD
 

 

By Sunil Raghu and Anshul Choudhary

 

AHMEDABAD/MUMBAI – Riding the wave of increased demand for gold despite high prices, Titan Co. Ltd. reported a strong jump in sales and beat the Street's view on its March quarter financials. The top line, which is the highest in eight quarters, grew on account of a 30% rise in jewellery and coin sales supported by 12% growth in the studded jewellery segment.

 

Titan Co.'s net profit rose nearly 10.7% on year to INR 8.70 billion, from INR 7.9 billion a year ago. The net profit was above analysts' average estimate of INR 8.2 billion. The revenue from operations was up 19.7% on year at INR 134.77 billion, which was notably above the Street view of INR 124.2 billion.

 

Sequentially, Titan Co.'s net profit fell 12.1%, while net revenue from operations was up by 19.4% in the reporting quarter on the back of a 25% jump in sales in the company's jewellery segment, which made up for more than four-fifths of its total revenue during the quarter.

 

Growth in revenue from the domestic jewellery segment, which houses the company's flagship brand Tanishq, was largely driven by a rise in ticket size and 64% growth in the sale of gold coins. Same-store sales in the segment rose 15% on year. Contribution from new buyers was slightly down at 52% in the March quarter, as compared with 54% a year ago. The company net added 16 stores in the jewellery business in India, including four Tanishq stores.

 

High gold prices pushed customers away from studded jewellery and the share of these products in overall sales declined 300 basis points during the quarter, the company said. A shift towards low-margin gold coins from high-margin studded jewellery affected the segment's profitability. The jewellery segment's earnings before interest and tax margin in the March quarter fell 25 bps on year to 11.9%.

 

A fall in the margin of the company's largest business segment naturally hit growth in Titan Co.'s overall margin despite other businesses reporting better margins. The company's EBIT margin during the reporting quarter was flat at 11.1%.

 

While the premium jewellery business of Titan Co. saw pressure on margins, its more affordable segment under CaratLane flourished. CaratLane's figures are not part of Titan Co.'s standalone results. CaratLane's revenue during the quarter rose over 23% on year to INR 8.83 billion and EBIT margin improved 69 bps to 7.9%. This came on the back of an 18% rise in the average bill value and net addition of 17 stores in India during the quarter.

 

The company's total income from the watches and wearables segment for the March quarter rose nearly 20% on year to INR 11.26 billion. This was led by 44% growth in sales of Fastrack watches and 25% growth in sales of Sonata watches, the company said. Further, double-digit growth in sales through Helios stores, which sell premium and luxury watches, helped the segment overall to report a 330 bps rise in EBIT margin to 11.8% during the quarter under review.

 

Titan Co.'s smallest business of sunglasses and spectacles saw nearly 16% growth in revenue to INR 1.92 billion. Within this, sunglasses reported 52% growth in revenue, outpacing other products in the business. The eyecare business saw sharp margin expansion with EBIT margin in the March quarter rising to 10.4% from 4.8% a year ago.

 

For the financial year 2024-25 (Apr-Mar), Titan Co. reported a net profit of INR 33.35 billion, down 6% from a year ago. Its revenue rose over 16% to INR 548.42 billion. At the same time, its EBIT in FY25 rose 3.2% to INR 52.48 billion, but the EBIT margin declined 168 bps to 10.0%.

 

The company announced a dividend of INR 11 per share. It also announced that Chief Executive Officer Ajoy Chawla will become the new managing director from Jan. 1. Managing Director C.K. Venkataraman will leave the post on Dec. 31 after six years in the post on reaching the age of retirement. Thursday, shares of the company closed at INR 3,369.30, up 0.9% on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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