The Tata Group company's consolidated net profit surged 33.7% to Rs 857 crore on 17.53% rise in revenue from operations to Rs 8,134 crore in Q2 FY23 over Q2 FY22.
Total income for the quarter was Rs 8,308 crore, registering a growth of 18.21% as compared to Rs 7,028 crore of Q2 FY22 (excluding bullion sale).
Profit before tax jumped 33.06% to Rs 1,155 crore in quarter ended 30 September 2022 from Rs 868 crore recorded in the corresponding quarter previous year.
EBITDA grew 28.9% to Rs 1,294 crore in Q2 FY23. EBITDA Margin stood at 15.6% in Q2 FY23 as compared to 14.3% reported in Q2 FY22.
The company's cost of goods sold (COGS) rose 18.2% to Rs 6,413 crore during the quarter. Employee benefits expense stood at Rs 325 crore (up 19.9% YoY) and advertising cost stood at Rs 173 crore (up 58.7% YoY).
During the quarter, the company's jewellery business registered an income of Rs 7,203 crore compared to Rs 6,106 crore in Q2 FY22 (excluding bullion sale), a growth of 18%.
Watches & Wearables business reported an income of Rs 829 crore with 21% growth in Q2 FY23 from Rs 687 crore in Q2 FY22.
Eyecare business reported an income of Rs 167 crore with 4% growth in Q2 FY23 as against Rs 160 crore in the corresponding quarter previous year.
Other businesses comprising Indian dress wear and Fragrances & Fashion Accessories reported an income of Rs 73 crore in Q2 FY23 compared to Rs 46 crore in Q2 FY22, recording a growth of 59%.
Titan added (net) 105 stores during the year. The company's retail chain (including Caratlane) has 2,408 stores across 382 towns with an area exceeding 3 million sq. ft. as on September 2022.
Among subsidiaries, Caratlane Trading reported a revenue of Rs 445 crore and a profit of Rs 19 crore (before taxes) for the quarter compared to revenue of Rs 288 crore and a profit of Rs 10 crore in the same quarter of the previous year registering a revenue growth of 55%.
Titan Engineering & Automation (TEAL) reported a revenue of Rs 123 crore and a profit of Rs 13 crore (before taxes) compared to a revenue of Rs 51 crore and loss of Rs 1 crore in the same quarter of the previous year.
CK Venkataraman, managing director of the company stated that, "The company has continued its strong performance into Q2 across all business segments. Despite an uncertain macro environment, the current festive season starting from end of September month and continuing till end of October has been quite positive and the consumer confidence remains upbeat. We have clocked a retail growth of 17-19% in larger business divisions of the company namely - Jewellery, Watches & Wearables and EyeCare over similar festive season timeline of the previous year. We remain relentlessly focussed in executing our growth plans in India and overseas and are optimistic about our performance in the remaining quarters of the current financial year."
Titan Company, a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO), commenced its operations in 1987 under the name Titan Watches. In 1994, Titan diversified into Jewellery (Tanishq) and subsequently into EyeCare.
Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances (SKINN), accessories and Indian dress wear (Taneira).
Shares of Titan Company rose 0.18% to settle at Rs 2,768.30 on the BSE.
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