Titan's Q3 profit rises 9.5% to Rs. 1,040cr; misses estimates
Titan Company has reported a standalone net profit of Rs. 1,040 crore for the December quarter of FY24, marking a 9.5% increase compared to the same period last year. The company's total revenue rose by 20% reaching Rs. 13,052 crore, up from Rs. 10,875 crore in the year-ago quarter, according to its regulatory filing. However, Titan's results fell short of the estimated revenue of Rs. 13,177 crore and profit of Rs. 1,145 crore.
Titan's Q3 earnings and EBIDTA margin
The earnings before interest, tax, depreciation, and amortization (EBIDTA) for Titan during the December quarter amounted to Rs. 1,457 crore, also growing by 9.5%. The EBIDTA margin was reported at 11.2% but experienced a decline of 100 basis points YoY. For reference, one basis point is equal to one-hundredth of a percentage point (0.01% or 0.0001). The stocks of the Tata-owned company closed at Rs. 3,628.00, a dip of 1.88% since yesterday. Titan's main segments include jewelry, watches, and eyewear.
Titan's income from jewelry segment
Titan Company's total income from the jewelry segment rose by 23% to Rs. 11,709 crore. In India, the company's jewelry business grew by 21% aided by festive season and high gold prices. Tanishq, Titan's jewelery arm, expanded its global footprints by opening new stores in US and Singapore. Domestically, Tanishq opened 18 new stores to spread its network to 453 stores. Mia, Tanshiq's sub-brand, launched 16 new outlets, expanding its footprint to 161 stores.
Titan's growth from wearables, eye care, watches and emerging businesses
In the eye care segment, the total income dipped by 4% to Rs. 1,167 crore durin Q3. Earnings before interest and taxes was recorded as Rs. 14 crore—an 8.4% margin. In Q3FY24, Titan's watch business recorded a total income of Rs. 9,982 crore, translating to a 21% increase from Q3FY23. Also, the emerging businesses including Taneira and Fragrances and Fashion Accessories (F&FA), summed up a total income of Rs. 1,112 crore—a 26% growth YoY.
