Titan Company Q1 results: Profit drops 4% to Rs 756 crore; margin contracts 242 bps

Titan Company on Wednesday reported a 4 per cent year-on-year (YoY) drop in consolidated net profit at Rs 756 crore compared with Rs 790 crore in the corresponding quarter last year. This is even as consolidated sales for the quarter grew 21 per cent YoY to Rs 11,070 crore compared with Rs 9,131 crore in the year-ago quarter. The Tata group firm said its consolidated Ebit fell 2 per cent YoY to Rs 1,111 crore, with YoY margins falling 242 basis points to 10 per cent from 12.5 per cent in the year-ago quarter.

MD CK Venkatraman said the year started well for Titan Company with double digit revenue growth across the business segments. He said his company was pursuing market share gain across categories and investing in capabilities and retail network expansion.  Venkatraman said the international foray is shaping well and that it remains optimistic about its performance for the rest of the financial year.

In the case of jewellery segment, total income of stood at Rs 9,070 crore, up 19 per cent YoY. Titan Company said its India business grew 20 per cent in the same period, driven by healthy demand during Akshaya Tritiya and an attractive gold exchange program.

The buyer growth was 14 per cent and the average ticket sizes moved up by 6 per cent YoY.

"The Ebita came in at Rs 999 crore with 11 per cent Ebitda margin for Q1FY24, lower than same period last year due to one-time diamond price inventory gains in Q1FY23 but normalised in the current quarter. Business also undertook investments for growth through aggressive exchange offers, brand building initiatives and pricing rationalization programs to gain market share," Titan said. 

"Tanishq on-boarded iconic cricketer Sachin Tendulkar as part of its 'Brilliant by Design' campaign for Celeste Solitaires. A limited-edition collection of 100 exclusive Celeste solitaires was launched to celebrate Sachin's 100th century and 50th birthday. The 'Stunning every Ear' campaign for the elegant woman and the collection 'Dibyani', an ode to the culture of Odisha, were well received," Titan Company said.

In the Watches & Wearables segment, the business recorded a total income of Rs 890 crore, up 13 per cent YoY, backed by a strong growth of 81 per cent in the Wearables segment.

The eyecare business saw a total income of Rs 203 crore, up 11 per cent YoY. Ebit for this segment came in at Rs 35 crore. Emerging businesses recorded total income of Rs 76 crore.