Titan Q2 earnings: Net profit falls 23%, total income rises

Titan Company Ltd on Tuesday reported a 23% fall in net profit for the quarter ended September 2024.  Net profit slipped to Rs 704 crore in Q2 against Rs 916 crore in the corresponding quarter of the previous fiscal. Profit came below street estimates of Rs 990 crore. Total income in Q2 rose 26% to Rs 13,660 crore against Rs 10,837 crore. 

EBITDA slipped 14.7% to Rs 1188 crore in Q2 against Rs 1392 crore (YOY). Q2 EBITDA margin slipped to 8.7% against 12.8% (YOY). 

Profit before tax slipped 24% to Rs 948 crore in Q2 compared to Q2FY24 mainly due to impact of custom duty reduction. 

Jewellery

Total income for the quarter grew 26% over Q2FY24 to Rs 10,763 crore. The India business grew 25% in the same period. EBIT at Rs 932 crores came at a margin of 8.7% for the quarter. Normalizing the custom duty impact, Q2FY25 EBIT came at Rs 1,222 crores, clocking 11.4% margin. The custom duty reduction saw revival in consumer interest as gold prices cooled off temporarily. The ensuing gold rush lasted well into mid-September. Buyer growth was healthy and well accompanied by increase in average selling prices, both exhibiting double-digit growths. During the quarter, in India, Tanishq opened 11 new stores (net), Mia added 12 and Zoya added 1 store respectively. 

Watches & Wearables

Business recorded a total income of Rs 1,301 crore, up 19% over Q2FY24. The domestic business grew 19% in the same period. EBIT came in at Rs 194 crore clocking a margin of 14.9% for the quarter. Analog segment recorded a strong 26% revenue growth over Q2FY24 led by Titan brand clocking 32% growth in the same period. Consumer preferences for premium brands was clearly visible with Helios channel (international brand sales) clocking a healthy retail growth of 43% over Q2FY24. Wearables segment saw a 13% drop in their Revenue compared to Q2FY24 primarily due to reduction in average selling prices. 34 stores (net) were added in Q2FY25 comprising of 18 new stores in Titan World, 14 in Helios and 2 in Fastrack respectively. 

EyeCare

Total Income of Rs 201 crores in Q2FY25 grew 7% over Q2FY24. Business recorded an EBIT of Rs 24 crore clocking a margin of 11.9% for the quarter. Frames and lenses saw healthy growth in volumes. Sunglasses recorded a volume decline due to seasonality. International brand sales recorded a strong growth 53% over Q2FY24. Business increased its promotional activities leading to a double-digit growth in advertising compared to the same period last year. Division added 3 new stores (net) during the quarter in Titan Eye+. 

The earnings were announced after market hours. The Titan stock closed 0.23% higher at Rs 3233.05 on BSE today.