Jhunjhunwala Stock Posts 23 per cent drop in its Q2 PAT
Titan, owned by Tata Group, announced a year-on-year (YoY) drop of 23.1 per cent in its consolidated net profit for the quarter ending September 2024, which came in at Rs 704 crore.
Titan, owned by Tata Group, announced a year-on-year (YoY) drop of 23.1 per cent in its consolidated net profit for the quarter ending September 2024, which came in at Rs 704 crore. The decline was mainly due to the impact of a reduction in customs duty.
Q2 FY25 Performance and Segment Highlights
Titan reported a 16 per cent increase in revenue for Q2FY25, reaching Rs 14,534 crore compared to Rs 12,529 crore in the same period last year. However, EBITDA declined by 12.4 per cent to Rs 1,236 crore from Rs 1,411 crore, with the EBITDA margin dropping 275 basis points to 8.5 per cent from 11.26 per cent.
The jewellery segment, which is Titan's largest contributor, posted a 26 per cent YoY growth in revenue, reaching Rs 10,763 crore for the quarter. EBIT for this division was Rs 932 crore, resulting in an 8.7 per cent margin. In line with expansion plans, Titan opened 24 new stores for Tanishq, Mia, and Zoya brands.
Titan’s watches and wearables segment grew 19 per cent during Q2FY25, although the wearables sub-segment saw a 13 per cent decline due to reduced average selling prices. The eyecare division grew 7 per cent, while emerging businesses, including Taneira (Indian dress wear), fragrances, and accessories, saw a 14 per cent rise in income, totaling Rs 106 crore. The emerging businesses unit recorded a Rs 29 crore loss this quarter.
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In international markets, Titan’s jewellery business surged 62 per cent YoY, bringing in Rs 273 crore. The Mia brand launched its first store in Abu Dhabi, increasing Titan’s total international jewellery stores to 18, which includes Tanishq and Mia outlets.
Management Commentary
Commenting on the results, Managing Director C.K. Venkataraman said, “After a muted Q1, Q2 witnessed encouraging growth across key businesses. Jewellery clocked healthy double-digit growth for the quarter. 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”
Disclaimer: The article is for informational purposes only and not investment advice.