Jewellery retailer Titan on Friday beat analyst estimates on net profit, revenue and Ebitda, though margins remained under pressures.
The Tata group firm reported a consolidated net profit of Rs 915 crore for the September quarter (Q2) of FY24, an increase of 10.1% year-on-year and beating analysts’ estimates of Rs 867 crore for the period.
Revenue rose 36.7% y-o-y to Rs 12,529 crore, ahead of Bloomberg consensus estimates of Rs 9,773 crore. Earnings before interest tax depreciation and amortisation (Ebitda) rose 13.2% y-o-y to Rs 1,411 crore, ahead of Street estimates of Rs 1,274 crore.
However, Ebitda margin for Q2 was at 11.3% versus 13.6% in the year-ago period on higher expenses. Analysts had forecast Ebitda margins at 13% for the September quarter.
Titan’s jewellery revenue, excluding bullion sales, was at `9,265 crore, up 23.3% y-o-y. Watches and wearables revenue at `1,092 crore, was up 31.6% y-o-y, while eyecare revenue, at `189 crore, was up 13.2%, driven by the international business.
Analysts say the company’s gold exchange programme and consumer offers have helped Titan in maintaining momentum in the jewellery segment, which contributes over 85% to consolidated revenue.
Revenue of other businesses, including emerging divisions of Taneira, fragrances and fashion accessories, and the subsidiaries—Titan Engineering and Automation and Titan Commodity Trading—rose 11.2% during the quarter. The emerging businesses, however, reported a cumulative loss of `24 crore in the quarter under review.
“We retain our focus on improving market share by offering differentiated products to our consumers, touching their everyday lives in a meaningful way,” CK Venkataraman, managing director of Titan, said.
Titan opened 68 stores in the quarter, taking its store total count to 2,613. The highest number of outlets added was for the jewellery business at 39, followed by 20 for watches and wearables, and five for eyecare. Four Taneira stores were also added.