Consumer discretionary major Titan on Thursday reported a 9% year-on-year (YoY) growth in its standalone net profit at Rs 1,040 crore in the third quarter. It was Rs 951 crore a year ago. The profit figure was lower than ET NOW poll estimate of Rs 1,159 crore.
Revenue from operations jumped 20% YoY to Rs 13,052 crore in the reporting quarter, compared with Rs 10,875 crore in the last year quarter.
EBIT for the quarter increased 11% YoY to Rs 1,478 crore in the said quarter. The same stood at Rs 1,328 crore last year.
EBIT margins declined 116 basis points YoY to 11.3%.
“The festive quarter saw encouraging consumer demand delivering a healthy double-digit growth of 24% over a strong base of Q3FY23,” said CK Venkataraman, MD, Titan.
Jewellery
Total income from the jewellery business grew 23% to Rs 11,709 crore and the India business rose 21%. The business continued to run its attractive programs that helped maintain growth momentum amidst an environment of high gold prices.
EBIT for the segment stood at Rs 1,432 crore and it recorded a margin of 12.2% for the quarter.
Tanishq expanded its international presence adding two more stores in the US in Houston and Dallas and one store in Singapore. Mia opened its first store in Dubai taking Titan’s Jewellery international footprint to 14 stores.
“Our international store openings in Houston, Dallas and Singapore market were enthusiastically received by the Indian diaspora and other nationals at those locations,” said Venkatraman.
During the quarter, in India, Tanishq opened 18 stores whereas Mia added 16 new stores. The domestic network now covers 453 stores in Tanishq, 161 stores in Mia and 8 stores of Zoya.
Watches and Wearables
The watches and wearables business registered a 21% growth in its revenue at Rs 982 crore, while the domestic business rose 23% in the same period.
Analog watches clocked revenues of Rs 810 crore, a rise of 18% and the wearables revenues increased by 65% to Rs 136 crore.
EBIT for the segment came in at Rs 55 crore with an EBIT margin of 5.6% for the quarter.
During the quarter, nine new stores were added in Titan World, 11 stores in Helios and five stores in Fastrack. The network now covers 655 stores in Titan World, 198 stores in Fastrack and 223 stores in Helios.
EyeCare
EyeCare reported a total income of Rs 167 crore in the third quarter, showing a fall of 4% YoY. EBIT for the business stood at Rs 14 crore with margin of 8.4%.
Titan Eye+ opened two new stores internationally during the quarter, one each in Dubai and Sharjah taking the international footprint to 3 stores in the GCC region. The eyecare division now has 905 stores of Titan Eye+ and 8 stores of Fastrack.
Emerging Businesses
Revenue from the emerging business recorded a revenue of Rs 112 crore. Emerging businesses comprise Indian dress wear (Taneira) arid fragrances, fashion accessories (F&FA).
Taneira’s sales grew 61% YoY and the F&FA business declined 7%. In key sub-segments, women’s bags recorded 25% growth while fragrances dropped by 6% compared to Q3FY23. The emerging businesses together recorded a loss of Rs 20 crore for the third quarter.
Subsidiaries performance
Cartlane’s total income jumped 32% to Rs 893 crore in the December quarter. EBIT came in at Rs 82 crore for the reporting period, clocking a margin of 9.2%.
Meanwhile, Titan Engineering & Automation revenues rose 61% YoY to Rs 202 crore in Q3FY24.
“Our domestic store expansions in all target markets too are progressing well. We will continue to pursue market share growth and are actively investing in capabilities across all our business segments,” said Venkatraman.
On Thursday, Titan shares were trading 2.05% lower at Rs 3,621 on NSE.
