Titan Company Q1 revenue grows by 12% to ₹12,386 crore, profit dips by 5.5%

Aishwaraya Kumar Updated - August 02, 2024 at 08:17 PM.
Titan Company | Photo Credit: KSL

Bengaluru-headquartered Titan Company reported a consolidated revenue ₹12,386 crore growing by 12 per cent year-on-year (YoY) as compared to Rs 11,070 crore for the quarter that ended on June. The profit after tax (PAT) of the company dipped by 5.5 per cent to ₹715 crore in comparison to ₹756 crore in the corresponding quarter last year.

“The first quarter performance reflects mixed consumer trends in lifestyle categories. While the inclement weather conditions during the summers, general elections, and lower wedding days impacted retail walk-ins, the growth metrics in Watches & Wearables and EyeCare were quite healthy,” said CK Venkataraman, Managing Director of the Titan Company.

Standalone results

The jewellery business reported a 9 per cent increase in total income compared to Q1 FY24, reaching ₹9,879 crore, while the Indian segment experienced an 8 per cent growth during the same period.

Retail growth during the first six weeks of the quarter, which included Akshaya Tritiya, was strong at 20 per cent. However, several challenges impacted topline figures for the quarter. These included election-related restrictions in various markets, a limited number of wedding dates, a significant rise in gold prices (20 per cent increase compared to Q1 FY24), an unprecedented heat wave, and an overall decline in consumer demand.

In addition, Tanishq expanded its international presence by opening a new store in Muscat, and Oman, bringing Titan’s jewellery footprint to a total of 17 stores worldwide. In India, Tanishq opened 11 new stores (net) during the quarter, while Mia added 19 stores, and Zoya opened 3 new locations.

The watches and wearables segment recorded a total income of approximately ₹1,021 crore — reflecting a 15 per cent increase. The domestic segment grew by 14 per cent during the same period. EBIT touched ₹115 crore, resulting in a margin of 11.3 per cent for the quarter.

The Analog segment performed 17 per cent revenue growth driven by the Titan, Fast Track, and Sonata brands. The e-commerce consumer sales saw strong double-digit growth compared to the previous year. While the Wearables segment recorded healthy double-digit growth in volume, a decline in average selling prices resulted in a 6 per cent drop in revenue.

The Eyecare division registered a total income ₹209 crore, reflecting a 3 per cent increase. The business recorded an EBIT of around ₹20 crore, resulting in a margin of 9.6 per cent for the quarter. Titan Eye+’s affordable fashion product range contributed to a 10 per cent volume growth in the quarter. Additionally, volumes from House Brands and Other products grew by 10 per cent and 13 per cent, respectively, over the same period.

The Emerging Businesses, which include Indian Dress Wear (Taneira), Fragrances, and Fashion Accessories (F&FA), reported a total income of ₹80 crore for Q1 FY25, recording a 5 per cent increase YoY. Excluding the discontinued belts and wallets sub-segment, comparable growth was 13 per cent. However, these businesses collectively recorded a loss of around ₹26 crore for the quarter.

The International Jewellery business saw a 92 per cent growth, touching ₹350 crore. Meanwhile, Engineering & Automation Ltd recorded a total income of around ₹197 crore in Q1 FY25, reflecting a significant growth of 223 per cent compared to the same period last year. The EBIT for the quarter was approximately ₹11 crore, yielding a margin of 5.8 per cent.

Caratlane Trading Pvt Ltd reported a total Income growth of 30 per cent to ₹832 crore (excluding digigold sales, comparable growth was 18 per cent in the same period). EBIT touched at ₹38 crore for Q1FY25 clocking a margin of 5.1 per cent.

The company closed its shares at ₹3,463.15 with a dip of 0.15 per cent on the BSE.

Published on August 2, 2024 13:39

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