Titan Company posted its fiscal first quarter profit at Rs 756 crore, down 4.3 per cent in comparison to Rs 790 crore during the corresponding quarter of last year, missing estimates. It posted revenue from operations at Rs 11,897 crore, up 26 per cent as against Rs 9,443 crore during Q1FY23. According to CNBC TV18 estimates, Titan Company was expected to record the first quarter profit at Rs 860 crore and revenue at Rs 10,300 crore. While the total income for the quarter stood at Rs 12,011 crore, Titan Company’s total expenses during the time period was at Rs 11,009 crore.
Titan Company’s Q1 performance across business verticals
In terms of sales across segments, Titan Company’s watches and wearables segment posted a total income of Rs 913 crore, up 16.2 per cent on-year. “Premiumization theme was at the fore with Titan and International brands seeing strong buying momentum clocking handsome double-digit growths in the analog segment,” the company said. In the category, Titan Company said, Fastrack brand grew the fastest clocking sizable gains in the portfolio.
The jewellery division clocked a total income of Rs 10,696 crore, showcasing an increase of 28.1 per cent in comparison to the previous year. The India business grew by 20 per cent in the same period driven by healthy demand during Akshaya Tritiya and an attractive gold exchange program. “Business also undertook investments for growth through aggressive exchange offers, brand building initiatives and pricing rationalization programs to gain market share,” it said.
The eyecare segment reported a sales of Rs 203 crore during the quarter, up 10.9 per cent from Rs 183 crore during Q1FY23.
Meanwhile, in terms of performance by Titan Company’s emerging businesses, total income came in at Rs 76 crore (on a standalone basis) and this comprised fragrances, fashion accessories (F&FA) and Taneira. While F&FA grew by 12 per cent, Taneira was up 81 per cent over the same period last year.
“The year has started well for us with double-digit revenue growth across business segments. The jewellery business remained the star performer with a 19 per cent growth on a YOY basis,” said CK Venkataraman, Managing Director, Titan Company.
Titan Company’s key subsidiaries during Q1
For CaratLane, total income grew by 32 per cent to Rs 640 crore as compared to Q1FY23 and profit before taxes was Rs 14 crore with a margin of 2.1 per cent. Titan Engineering and Automation Limited, meanwhile, recorded a total income of Rs 61 crore, down 32 per cent as compared to Q1FY23. Loss for the quarter was at Rs 12 crore. “Order booking in the manufacturing services business was robust with the aerospace industry witnessing an all-time high order bookings and passenger traffic reaching pre-Covid levels, both domestically and internationally,” it said. The Automation Solutions business too had a good order position of Rs 500+ crore at the end of the quarter.
“We are pursuing market share gain across categories and investing in various capabilities and retail network expansion. Our international foray is also shaping up well. We remain optimistic about our performance for rest of the financial year,” said CK Venkataraman.