Titan Q2 Results: Net Profit Falls 25% YoY to ₹705 Crore, Revenue Up 13%

Titan Company Ltd, a Tata Group owned lifestyle and jewellery retailer, announced its financial results for Q2 FY25 on November 5, 2024. The company reported a 25% decline in net profit to ₹705 crore, largely attributed to the recent reduction in customs duty. Despite the profit dip, Titan’s revenue grew 13% year over year (YoY) to ₹13,215 crore, exceeding market estimates for Q2.

Titan Company Q2 Results Quick Insights

• Revenue: ₹13,215 crore, up by 13% YoY.
• Net Profit: ₹705 crore, down by 25% compared to last year.
• EPS: Details pending.
• Segment Performance: The core jewellery segment saw a revenue growth of 26% YoY, reaching ₹10,763 crore with an adjusted EBIT margin of 11.4% post customs duty impact.
• Management's Take: "Strong growth was driven by healthy buyer metrics and increased average selling prices in the jewellery segment, despite customs duty adjustments. The outlook remains positive as Titan continues to expand across segments."
• Stock Reaction: Shares ended at ₹3,237.00 on the BSE, up by 0.35% post results announcement.

Management Commentary of Titan Ltd.

Titan’s Managing Director, CK Venkataraman, noted that “Q2 witnessed encouraging growth across key businesses, particularly in jewellery, which clocked double digit growth after a muted Q1. Titan’s strategy of catering to diverse customer needs through brands like Tanishq, Mia, Zoya, and CaratLane is resonating well, contributing to strong buyer growth and performance in both gold and studded jewellery categories.” 

Despite customs dutyrelated adjustments affecting profitability, Venkataraman expressed confidence in the competitiveness of Titan’s businesses and an optimistic outlook for the remaining financial year.

Titan Stock Reaction post Q2 Result

Following the Q2 results announcement, Titan’s shares rose modestly, closing at ₹3,237.00, up 0.35% on the BSE. The stock had gained over 1% earlier in the day, as investors anticipated the results. Yeartodate, however, Titan’s share price has declined by over 11%, impacted partly by recent duty cuts and a onetime inventory loss estimated at ₹3,250 crore.

About Titan Company Ltd and Upcoming News

Titan, a major player in the Indian jewellery and lifestyle market, operates iconic brands like Tanishq and CaratLane. In Q2 FY25, Titan expanded its retail network by adding a net total of 75 stores, bringing its footprint to 3,171 stores across India. The company remains wellpositioned in the luxury and lifestyle sector, with anticipated growth in jewellery, watches, and eyewear segments.