Titan Q3 results: Profit rises 9.4% to Rs 1,040 crore, misses estimates

Indian jeweler and watch maker Titan Company reported third-quarter profit below estimates on Thursday as escalating costs of bullion outshined demand during the festive season

Indian jeweller and watch maker Titan Company reported third-quarter profit below estimates on Thursday as escalating costs of bullion outshined demand during the festive season.

The company's profit rose 9.4% to Rs 1040 crore ($125.33 million) in the three months ended Dec. 31, but fell short of analysts' estimate of Rs 1094 crore, according to LSEG data.

Titan, a joint venture between salt-to-software conglomerate Tata Group and Tamilnadu Industrial Development Corp, said the total cost of materials consumed rose 36% owing to a rise in the price of its key raw material, gold.

Other costs, including finances, drove total expenses up 22% to Rs 1185 crore.

 

As a result, its earnings before interest and tax (EBIT) margin contracted to 11.3% from 12.5% a year earlier.

Titan's jewellery segment that houses brands like Tanishq and CaratLane posted a revenue growth of 23%, led by festive season sales.

Its watches and wearables segment, which sells products of brands like Fastrack, Police and Coach, saw a 21% rise in revenue but accrued a 38% dip in profit.

The eye care business, which is smaller in terms of revenue contribution, saw a 3% fall in revenue. It owns the brands Fastrack, Ray-Ban and Tommy Hilfiger.

Rival Kalyan Jewellers, which reported quarterly results on Wednesday, saw a nearly 22% rise in profit.

Titan's share fell as much as 2.6% after the results, before closing down 1.9%.