Titan Q3 Results: Standalone profit dips 5% YoY to ₹990 crore; revenue jumps 24% | Stock Market News

Tata Group company Titan on Tuesday, February 4, reported a 4.9% year-on-year (YoY) decline in its standalone net profit for the third quarter of fiscal 2024-25 (Q3 FY25), ended December, to ₹990 crore. The figure stood at ₹1,040 crore in the same period last year.

However, on a sequential basis, the profit surged 40.42% from ₹705 crore posted in the preceding quarter of FY 25.

The jewellery maker reported a 24% YoY jump in its revenue from the sale of products to ₹16,053 crore in Q3 FY25. Meanwhile, on a sequential basis, the figure witnessed a 31% improvement.

The earnings before interest and tax (EBIT) grew 1.9% YoY to ₹1,506 crore. However, the EBIT margin declined by 203 basis points to 9.3% in Q3 from 11.3% in the year-ago period.

Segment-wise Performance

The company’s flagship jewellery business recorded a 26% growth in income to ₹14,697 crore in Q3 FY25, with the India business growing 25%, thanks to the festive season. “Secondary sales recording an impressive 28% growth, buoyed by higher gold prices, wedding-related purchases growing by 29%, and healthy same-store sales growth of 22%, respectively, compared to Q3FY24,” Titan said in a press release today.

Gold jewellery and coins clocked a strong 27% YoY growth and continued to be the preferred choice of customers. During the quarter, Tanishq opened 11 new stores (net), while Mia added 13 stores in the domestic market.

In the watches & wearables segment, the total income climbed 15% YoY to ₹1,128 crore. Meanwhile, the domestic business recorded a 14% growth in the same period last year. “The analogue segment recorded a robust 20% growth over Q3FY24, primarily led by the Titan brand, which clocked 18% growth in the same period. The wearables segment declined by 20%, with both Average Selling Prices and volumes declining by 8% and 7%, respectively, compared to Q3FY24. 23 stores (net) were added in Q3FY25, comprising 12 stores in Titan World, 10 in Helios, and 1 in Fastrack, respectively,” Titan reported.

In the eyecare segment, total income rose 16% YoY to ₹914 crore. Within product categories, sunglasses sales outpaced others, growing 35%, while frames and lenses grew in mid-double digits over their respective Q3FY24 numbers. The division closed 3 new stores (net) during the quarter in Titan Eye+.

The emerging businesses segment, comprising Indian Dress Wear (‘Taneira’), Fragrances, and Fashion Accessories (F&FA), recorded a Total Income of ₹118 crore, growing 5% over Q3FY24.

CK Venkataraman, Managing Director of Titan, stated, “The festive quarter gone by firmly established the FY25 growth trajectory after a muted Q1 and healthy Q2. The custom duty-related losses on the inventory (held at the time of the duty change) have been fully realized in this quarter, and hence the profitability is lower to that extent.”

We are committed to investing in the growth of all our businesses and specifically the emerging ones to help them scale faster, he said, adding we remain optimistic about our performance and hope to end the fiscal year with good growth over FY24.

Stock Price Trend

Titan share price ended the trade marginally higher on the BSE today ahead of its quarterly earnings show. The stock settled at ₹3,589.50, up 0.26%.

Titan stock has fared well in the near term, rising 4% on a one-month basis and 9% on a three-month basis. Meanwhile, it has gained 4% in the past six months even as the scrip has dipped 0.4% in the last one year.

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