Titan, a Tata Group company, reported a 4.9% year-on-year (YoY) decline in its standalone net profit for the third quarter of fiscal 2024-25 (Q3 FY25), amounting to ₹990 crore, compared to ₹1,040 crore in the same period last year. However, the profit showed a significant sequential growth, rising 40.42% from ₹705 crore in the previous quarter.
The company’s revenue from product sales saw a 24% YoY increase, reaching ₹16,053 crore in Q3 FY25, with a notable 31% sequential rise as well. Earnings before interest and tax (EBIT) grew 1.9% YoY to ₹1,506 crore, though the EBIT margin fell by 203 basis points to 9.3% from 11.3% in Q3 FY24.
Segment Performance:
- Jewellery Business: Titan’s core jewellery segment saw a 26% growth in income, reaching ₹14,697 crore in Q3 FY25. The domestic business grew by 25%, supported by the festive season. Secondary sales rose 28%, while wedding-related purchases increased by 29%, and same-store sales grew 22%. Gold jewellery and coins experienced a strong 27% YoY growth. The company also expanded by opening 11 new Tanishq stores and 13 Mia stores in the domestic market.
- Watches & Wearables: This segment reported a 15% YoY increase in income, reaching ₹1,128 crore. The domestic business grew 14%, with the analogue segment seeing a 20% growth, primarily driven by the Titan brand. However, the wearables segment faced a 20% decline, as both Average Selling Prices and volumes dropped by 8% and 7%, respectively. The company added 23 new stores in the segment during the quarter.
- Eyecare: Titan’s eyecare division posted a 16% YoY growth in income, reaching ₹914 crore. Sunglasses sales outpaced other categories, growing by 35%, while frames and lenses also saw mid-double-digit growth. The company opened 3 new Titan Eye+ stores.
- Emerging Businesses: The emerging businesses segment, including Indian Dress Wear (Taneira), Fragrances, and Fashion Accessories, generated ₹118 crore in total income, growing 5% YoY.
CK Venkataraman, Managing Director of Titan, mentioned that the festive quarter set a positive growth trajectory for FY25 after a subdued Q1 and a healthy Q2. He noted that the profitability was impacted due to the full realization of custom duty-related losses on inventory held during the duty change. Despite this, he remains optimistic about future performance and the growth prospects of the company’s emerging businesses.
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