Titan Q2FY25 results: Net profit down 23% due to cut in customs duty

Titan Company’s net profit in the second quarter this financial year (FY25) fell 23.1 per cent due to Customs duty reduction.

 

Its revenue from operations grew 25.8 per cent at Rs 13,473 crore in the quarter over last year while its net profit stood at Rs 704 crore.

 

Sequentially its net profit declined 1.5 per cent while its revenue rose 10.2 per cent. 

 

The jewellery major’s profit before interest, depreciation, and tax fell 11.5 per cent year-on-year to Rs 1,359 crore in the quarter ended September.

 

The owner of Tanishq saw its income from the jewellery business grow 26 per cent to Rs 10,763 crore on a standalone basis compared to the corresponding quarter last year.

 

 

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

 

“The custom duty reduction saw revival in consumer interest as gold prices cooled off temporarily. The ensuing gold rush lasted well into mid-September. Buyer growth was healthy and well accompanied by increase in average selling prices, both exhibiting double-digit growths. During the quarter, in India, Tanishq opened 11 new stores (net), Mia added 12 and Zoya added 1 store respectively,” the company said in its earnings release. 

 

In the watches and wearables business, it recorded an income of Rs 1,301 crore, up 19 per cent over the corresponding quarter last year.

 

The domestic business grew 19 per cent in the same period. 

 

“After a muted first quarter (Q1), Q2 witnessed encouraging growth across key businesses. Jewellery clocked healthy double-digit growth for the quarter. Our portfolio approach in this business of straddling diverse customer needs through the brands of Tanishq, Mia, Zoya and Caratlane is working well,” C K Venkatraman, managing director, said in its earnings release. 

 

He also said: “Buyer growth metrics were fairly strong and in good double-digits across gold and studded-product categories. The quarter also witnessed analog watches growing more than 25 per cent over last year with a commensurate uptick in volumes.”

 

Venkatraman added on account of the losses owing to Customs duty, as well as the need to invest in growth in various businesses, the profitability of Q2 was quite depressed.

 

Venkatraman said the company was confident about the competitiveness of each of its businesses and optimistic on its performance for the rest of the financial year.