Titan Q2 Results, Profit Down by 23%: Titan Share Price Falls by 2%

Titan Q2 results FY25 disclosed a 23.1% year-on-year decrease in the consolidated net profit. On the Titan Q2 results date which was November 5, 2024, the Titan share price was closed at ₹3,230.25. On November 6, 2024, Titan share price opened with a fall at ₹3,145.

Titan Q2 Results FY25: Key Highlights

• Titan Q2 results pointed out that the consolidated net profit was ₹704 crores in FY25 lower than the net profit of Q2 FY24 ₹916 crores.
• The operating revenue was at ₹13,538 crores, up 26.4% YoY from ₹10,713 crores in Q2 FY24 according to the Titan Company Q2 results​.
• EBITDA dropped from ₹1,535 crores in Q2 FY24 by 11.5% to ₹1,358 crores in the sequential quarter of financial year 2024-25.
• Titan share price has delivered negative returns of 1.72% in the last 1 day as on November 6, 2024 (at 11:49 AM).

Titan Q2 Results: Segment Performance

1. Jewelery: The jewelry business saw a growth of 26% in the total income at ₹10,763 crores in the second quarter of FY25. With the custom duty reduction, gold prices went down and saw a huge buying attitude from the customers. In the second quarter, Titan company opened 11 new stores of Tanishq, 12 of Mia, and 1 store of Zoya in India.
2. Watches & Wearables: As per the Titan Company Q2 results, this segment’s total income rose to ₹1,301 crores, up 19% YoY. The main driving factors are the growth of the Analog segment, the Titan brand, customer preferences for premium channels, and new store openings.
3. EyeCare: This business segment experienced a growth of 7% YoY with a total income of ₹201 crores in Q2 FY25. The pushing factors are frames and lenses, sunglasses sales growth, and the pushing of promotional activities. The company also opened 3 new stores in the Titan Eye+ as mentioned in the Titan Company Q2 results​.

Titan Company Q2 Results: Management Commentary

Mr. C K Venkataraman, Managing Director of the Titan Company said that – “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. The buyer growth metrics were fairly strong and in good double-digits across gold and studded product categories. The quarter also witnessed analog watches growing 25%+ over last year with commensurate uptick in volumes. Titan brand continues to be Indian consumers proud choice in this segment. 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.”

About the Titan Company

Titan Company Limited, a known player in the watch and jewellery industry is part of the Tata Group and started its operations in 1987. It was a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO). Starting with watches in 1987, the company ventured into Jewelry (Tanishq) and Eyecare businesses in 1994. Other Titan Company offerings are fragrances (SKINN), accessories and Indian dress wear (Taneira), and Women’s Bags (IRTH). Highlighting the Titan share price performance, it has generated a negative return of 4.08% in the last 1 week (as on November 6, 2024).

Keep exploring stocks and open demat account with SMC Global Securities. Stay tuned for the upcoming Nifty 50 companies quarterly results.

Reference
https://www.titancompany.in/sites/default/files/2024-11/SEoutcomeresultQ22024.pdf

Author: All Content is verified by SMC Global Securities.