Titan Company Q1 FY25 results: Net profit down 5%, revenue rises 12.6%

Titan Company saw its net profit fall 5 per cent year-on-year (Y-o-Y) for Q1 FY25 due to the financial cost of the CaratLane acquisition.

Its revenue from operations grew 12.6 per cent to Rs 12,223 crore in the quarter compared to last year, while its net profit stood at Rs 715 crore.

Sequentially, its net profit declined 7.3 per cent while its revenue rose 8.9 per cent.

The jewellery major’s profit before interest, depreciation and tax grew 10.3 per cent to Rs 1,367 crore in the quarter ended June.

The owner of Tanishq saw its total income from the jewellery business grow 9 per cent to Rs 9,879 crore on a standalone basis compared to the corresponding quarter last year. Also, its India business grew 8 per cent in the same period, it said in its earnings release.

“Q1 saw multiple forces coming together that impacted the topline. A steep rally in gold rates (20 per cent increase over Q1 FY24), election-led restrictions in many markets, very few wedding dates, and an unprecedented heatwave across the country weighed on overall consumer demand,” the company said in its earnings release.

It also expanded its international presence by adding one more store in Muscat, Oman, taking its jewellery store count overseas to 17. In India, Tanishq opened 11 stores, Mia added 19, and Zoya added another 3 stores.

In the watches and wearables business, it recorded a total income of Rs 1,021 crore, up 15 per cent compared to the corresponding quarter last year. The domestic business grew 14 per cent in the same period.

“In the recently presented Union Budget, the custom duty on gold imports in the country has been reduced from 15 per cent to 6 per cent. This development has long-term positive implications for the jewellery industry. While this change is likely to entail a short-term impact in the form of value loss on duty-paid gold inventory (expected to be expensed over the next two quarters), we remain optimistic about the longer-term benefits as it makes the market equitable for larger businesses like ours,” CK Venkatraman, managing director of Titan Co, said in its earnings release.

He also said, “Our first quarter performance reflects mixed consumer trends in lifestyle categories. While the inclement weather conditions during the summer, general elections, and lower wedding days impacted retail walk-ins, the growth metrics in watches and wearables and Eyewear were quite healthy. Notwithstanding some of these near-term variations, Titan is steadfastly pursuing market share gains across all business categories and is well equipped to provide a differentiated retail experience to our valued customers.”

Venkatraman added that the company remains optimistic about its performance for the rest of the financial year.