Titan Company Q1 Results Highlights: Standalone PAT Declines Slightly to ₹770 Cr

Titan Ltd reported a 1% decline in standalone net profit, which stood at ₹770 crore for the June quarter.  The company saw a 10% increase in standalone revenue from operations.

Titan Q1 Results Highlights

On August 2, Titan Ltd, a prominent jeweller and watchmaker, reported a 1% decline in standalone net profit, which stood at ₹770 crore for the June quarter, compared to ₹777 crore in the same period last year. This dip in profit is attributed to decreased demand driven by higher gold prices.

Conversely, the company saw a 10% increase in standalone revenue from operations, which rose to ₹11,105 crore in Q1FY25 from ₹10,103 crore in Q1FY24.

A Moneycontrol survey of eight brokerage estimates predicted Titan's fiscal first quarter net profit to be ₹771 crore and revenue to be ₹12,185 crore. The fewer wedding days in the quarter, along with high competition and pricing pressures, were cited as factors limiting sales growth and affecting profitability.

On the same day, Titan share price on the BSE dropped by 0.5%, closing at ₹3,450 each.

Titan Management Commentary

CK Venkataraman, Managing Director of Titan, remarked: "The recently announced Union Budget has reduced the custom duty on gold imports from 15% to 6%, which will have long-term positive implications for the jewellery industry. Although this change may cause a short-term impact in the form of value loss on duty-paid gold inventory, we expect these effects to be accounted for over the next two quarters. We remain optimistic about the longer-term benefits, as it creates a more equitable market for large businesses like ours. Our first quarter performance reflects mixed consumer trends in lifestyle categories. Despite adverse weather conditions, general elections, and fewer wedding days affecting retail walk-ins, growth metrics in Watches & Wearables and EyeCare were robust. Despite these short-term variations, Titan is committed to gaining market share across all business categories and is well-equipped to offer a distinctive retail experience to our valued customers. We remain optimistic about our performance for the rest of the financial year."

About Titan Company Ltd

Titan Company Ltd (Titan) is a retailing company offering a diverse product range, including eyewear, watches, jewelry, fashion accessories, and sarees. Their jewelry products include pendants, chains, earrings, finger rings, and neckwear. The eyewear products feature frames, ready readers, and sunglasses. Additionally, Titan provides franchising, distribution, and licensing services.

Titan markets its products under several brands, such as Tita, Titan Clock, Fastrack, Sonata, Zoop, Octane, Xylys, Helios, Titan Raga, Favre-Leuba, Nebula, Tanishq, Mia, Zoya, CaratLane, Titan EyePlus, Skinn, and Taneira. The company operates in India and Hong Kong, with its headquarters in Bengaluru, Karnataka, India.