 "Titan")
Titan Company reported fourth-quarter profit below estimates on Friday due to higher expenses and surging gold prices.
The company’s net profit rose 5.6 per cent year-on-year (Y-o-Y) for Q4FY24, while its revenue from operations grew 20.6 per cent at Rs 12,494 crore in the quarter compared to last year.
Overall, its net profit stood at Rs 771 crore.
Sequentially, its net profit declined 26.8 per cent, while its revenue also saw a 11.8 per cent decline.
Analysts pegged the company’s revenue at Rs 10,567.1 crore, while its net profit was estimated to be at Rs 876.2 crore.
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The jewellery major’s profit before interest, depreciation and tax grew 12.2 per cent to Rs 1,350 crore in the quarter ended March.
The owner of Tanishq saw its total income of the jewellery business grow 19 per cent to Rs 8,998 crore compared to the corresponding quarter last year.
Tanishq expanded its international presence adding a new store in Dubai and Chicago, taking the Titan's Jewellery international footprint to 16 stores.
During the quarter, Tanishq opened 11 new stores in India; Mia added 16 new stores, the company said in its earnings release.
Its watches and wearables business saw its total Income of Rs 940 crore, up 8 per cent Y-o-Y. The domestic business grew 9 per cent in the same period, it said.
The Tata Group company saw its eyecare business total Income flat at Rs 166 crore in the quarter while its emerging businesses which comprises of Indian Dress Wear ('Taneira'), Fragrances, Fashion Accessories (F&FA) recorded a total income of Rs 97 crores, up 26 per cent over the same period last year.
In its earnings release, CK Venkataraman, managing director of Titan Co said, “FY24 was yet another satisfying year for Titan. Our Jewellery business continued to grow in prominence achieving a proud milestone of 40,000+ crores in consumer sales. Together our brands of Tanishq, Mia, Zaya and Caratlane are meaningfully innovating and offering the best variety of choices for the discerning woman of tomorrow.”
He added: “Our Wearables business is making good strides contributing to the ambitious growth targets that the business has embarked upon. The EyeCare business has re-calibrated itself in this year of consolidation and has launched exciting new product launches for the fashion-conscious youth.”
Venkataraman was also quoted as saying that Taniera's expansions are gathering pace across the country.
In his outlook for FY25 he said: “As we look forward to FY25, all businesses of Titan Company Limited are single-mindedly continuing to focus on satisfying the ever-evolving needs of our lifestyle consumers.”
During its investor call, the management said there is a fair amount of competitive intensity because of elevated gold prices and added that the company will continue to invest in growth and respond accordingly to the marketplace to ensure that it continues to gain market share.
