Titan Company’s net profit falls marginally to Rs 770 crore, revenue surges 9%

Titan's Q1 earnings: On Friday, Titan Company released its first quarter results for the current financial year (Q1FY25), reporting a marginal decline of approximately one per cent in net profit, totalling Rs 770 crore, compared to Rs 777 crore in the same period last year.

The Tata Group company's revenue from operations for the first quarter of the current fiscal increased by nine per cent to Rs 11,263 crore, up from Rs 10,306 crore in the corresponding period of the previous year.

Titan’s income from the watch and wearable segment has registered a 14.7 per cent growth on year on year basis while the EBITDA margin for the same has also jumped by 12.7 per cent. Whereas, the income from the jewellery business marked nearly 9 per cent growth in the current fiscal.

The company is also positive about the reduction in the customs duty on gold imports by the government in the Union Budget 2024. The import duties have gone down from 15 per cent to 6 per cent which can have a long-term positive impact on the jewellery industry. 
In the investor presentation, CK Venkataraman, Managing Director, Titan Company said, “While this reduction in import duties is likely to entail a short-term impact in the form of value loss on duty paid gold inventory (expected to be expensed over the next two quarters), we remain optimistic on the longer-term benefits as it makes the market equitable for large businesses like ours.”

The company has attributed heatwaves and general elections along with lower wedding days in the first quarter of the financial year as the driver of mixed consumer trends in the lifestyle business.

Venkataraman said, “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. Notwithstanding some of these near-term variations, Titan is steadfastly pursuing market share gains across all business categories and is well-equipped to provide a differentiated retail experience to our valued customers. We remain optimistic about our performance for the rest of the financial year.”