Titan Company Q2 net profit down by 23% to ₹704 cr

Bengaluru-headquartered Titan Company has reported a 23.

1 per cent fall in consolidated net profit to ₹704 crore for the quarter ended September 30 due to custom duty-related loss.

The company had reported a consolidated net profit of ₹916 crore in the year ago period.

The total income was up by 26 per cent to ₹13,660 crore in Q2FY25 as compared to ₹10.

837 crore in Q2FY24.

“After a muted Q1, Q2 witnessed encouraging growth across key businesses.

Jewellery clocked healthy double-digit growth for the quarter.

Our portfolio approach in this business of straddling diverse customer needs through the brands of Tanishq, Mia, Zoya and CaratLane is working well,” said C K Venkataraman, Managing Director.

He said that the buyer growth metrics were strong and in good double-digits across gold and studded product categories.

Custom duty reduction The profit before tax was lower by 24 per cent at ₹948 crores compared to ₹1,252 crore in Q2FY24 mainly due to impact of custom duty reduction.

“On account of the customs duty related losses, as well as the need to invest in growth of various businesses, the profitability of Q2 was quite depressed.

However, we are quite confident about the competitiveness of each of our businesses and we remain optimistic about our performance for rest of the financial year,” he added.

The jewellery divison saw its total income for the quarter growing 26 per cent to ₹ 10,763 crore.

Its EBIT of ₹ 932 crore came at a margin of 8.

7 per cent for the quarter.

Normalising the custom duty impact, Q2FY25 EBIT came at ₹ 1,222 crore, clocking 11.

4 per cent margin.

During the quarter, in India, Tanishq opened 11 new stores, Mia added 12 and Zoya added 1 store respectively.

“The customs duty reduction saw a revival in consumer interest as gold prices cooled off temporarily.

The ensuing gold rush lasted well into mid-September.

Buyer growth was healthy and well accompanied by increase in average selling prices, both exhibiting double-digit growths,” said Titan in its regulatory filing.

The watches and wearables division total income grew by 19 per cent to ₹1,301 crores.

The Analog segment recorded a strong 26% revenue growth led by Titan brand clocking 32 per cent growth in the same period.

The premium segment with Helios channel (international brand sales) clocked a growth of 43per cent, while the wearables segment saw a 13 per cent drop in their revenue primarily due to reduction in average selling prices.

The eyecare business grew 7 per cent while the emerging businesses comprising Indian dress wear fragrances, fashion accessories recorded a total income of ₹ 106 crore for Q2FY25.

The emerging businesses together recorded a loss of Rs 29 crores for the quarter.

The International Jewellery business recorded an income growth of 62 per cent to ₹ 273 crores.

Other Businesses comprising primarily of analog watches grew 54 per cent compared to their Q2FY24 income.

The shares of the company closed 0.

23 per cent up at ₹ 3,233.

05 at BSE.

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