Titan net profit largely flat in Q3 FY25 due to cut in customs duty

Sequentially, its net profit rose by 48.7 per cent, while its revenue was up 22.1 per cent

Titan Company’s net profit during the third quarter of this financial year (Q3FY25) was largely flat due to Customs duty reduction.

 

Revenue from operations grew 25.2 per cent to Rs 17,740 crore in the quarter year-on-year (Y-o-Y) while net profit stood at Rs 1,047 crore.

 

Sequentially, net profit rose 48.7 per cent while revenue was up 22.1 per cent. 

 

The jewellery major’s profit before interest, depreciation, and tax (PBIT) was up 5.9 per cent Y-o-Y to Rs 1,802 crore in the quarter ended December.

 

The owner of Tanishq saw income from the jewellery business grow 26 per cent to Rs 14,697 crore on a standalone basis compared to the corresponding quarter last year.

 

 

Also, its India business grew 25 per cent during the same period, it said in its earnings release. 

 

“The festive quarter brought consumer cheer with secondary sales recording an impressive 28 per cent growth. It was buoyed by higher gold prices, wedding-related purchases growing by 29 per cent and healthy same-store sales growth of 22 per cent compared to Q3FY24,” the company said in its earnings release. 

 

In the watches and wearables business, it recorded an income of Rs 1,128 crore, up 15 per cent over the corresponding quarter last year. Domestic business grew 14 per cent in the same period.

 

“The festive quarter gone by firmly established the FY25 growth trajectory after a muted Q1 and healthy Q2. Jewellery saw its strongest quarter (yet) for the financial year, growing in excess of 25 per cent at the retail level,” CK Venkatraman, managing director (MD), said in its earnings release. 

 

He also said, “Consumer preference for gold, both as adornment jewellery and as a store of value, continued to remain fairly strong. Our analogue watches clocked a healthy retail growth of 20 per cent. EyeCare’s retail growth returning to double-digit was encouraging.”

 

He said that Customs duty-related losses on the inventory (held at the time of the duty change) have been fully realised in this quarter. Hence, the profitability is lower to that extent. 

 

Venkatraman added that the company is committed to investing in the growth of all businesses, specifically the emerging ones, to help them scale faster. 

 

He said, “We remain optimistic on our performance and hope to end the financial year with a good growth over FY24.”