Titan Q3 Results: Net profit rises 9% to ₹1,040 crore; revenue grows 20% YoY

Titan Company on Thursday reported a net profit of ₹1,040 crore for the third quarter of FY24, witnessing a growth of 9.4% from ₹951 crore in the same period last year.

The company’s revenue from operations in Q3FY24 increased 20% to ₹13,052 crore from ₹10,875 crore, YoY.

On the operational front, earnings before interest, tax, depreciation and amortization (EBITDA) during the quarter ended December 2023 rose 9.5% to ₹1,457 crore from ₹1,330 crore, while EBITDA margin contracted by 100 basis points (bps) to 11.2% from 12.2%, YoY.

“The festive quarter saw encouraging consumer demand delivering a healthy double-digit growth of 24% over a strong base of Q3FY23. Our international store openings in the Houston, Dallas and Singapore market were enthusiastically received by the Indian diaspora and other nationals at those locations,” said CK Venkataraman, Managing Director of Titan Company.

“Our domestic store expansions in all target markets too are progressing well. We will continue to pursue market share growth and are actively investing in capabilities across all our business segments,” he added.

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Jewellery

Jewellery segment’s total Income for the quarter grew 23% over Q3FY23 to ₹11, 709 crore. The India business grew 21% in the same period. EBIT at ₹1,432 crore recorded a margin of 12.2% for the quarter.

During the quarter, in India, Tanishq opened 18 stores whereas Mia added 16 new stores. The domestic network now covers 453 stores in Tanishq, 161 stores in Mia and 8 stores of Zoya, the company said in a release.

Watches & Wearables

Titan’s Watches & Wearables business’ total income grew 21% YoY to ₹982 crore. The domestic business grew 23% in the same period. EBIT came in at ₹55 crore with an EBIT margin of 5.6% for the quarter.

Analog watches Revenues of ₹810 crore grew by 18% and the Wearables portfolio revenues grew 65% to ₹136 crores respectively over Q3FY23. The premiumization journey saw good progress as both Titan and Helios (International Brands) saw growth largely driven by increase in Average Selling Prices (ASP).

In Wearables, Fastrack grew 66% and Titan Smart grew 57% respectively compared to Q3FY23, the company added.

EyeCare

The segment’s total Income declined 4% YoY to ₹167 crore in Q3FY24, while EBIT came in at ₹14 crore clocking a margin of 8.4%.

Titan Eye+ opened two new stores internationally during the quarter, one each in Dubai and Sharjah taking the international footprint to 3 stores in the GCC region. The domestic network now covers 905 stores of Titan Eye+ and 8 stores of Fastrack, it said.

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Emerging Businesses

Total Income of ₹112 crore for Q3FY24 for the Emerging Businesses comprising Indian Dress Wear (‘Taneira’) and Fragrances, Fashion Accessories (F&FA) grew 26% compared to the same period last year. The Emerging Businesses together recorded a loss of ₹20 crore for Q3FY24.

Subsidiaries' Performance

Among key subsidiaries of Titan Company, Caratlane’s total income grew 32% YoY to ₹893 crore, while its EBIT came in at ₹82 crore for Q3FY24 clocking a margin of 9.2%. 

Caratlane added 16 new stores (net) in the quarter taking the total store count to 262 stores spread across 105 cities pan-India.

Titan Engineering & Automation recorded a total income of ₹202 crore, a growth of 61% YoY. EBIT for the quarter was ₹25 crore at a margin of 12.4%.

On Thursday, Titan Company shares ended 1.78% lower at ₹3,631.60 apiece on the BSE.

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