Bengaluru, February 04, 2025: Titan Company Limited (“Titan”), announced its results today for the quarter and nine month period ended 31st December 2024.
Quarterly Financial Highlights:
Note: Total Income excludes bullion sales in all periods; Numbers and growth percentages rounded to nearest integers
Titan (consolidated) recorded a quarterly income of Rs17,723 crores achieving a growth of 25.5% over Q3FY24. The PBT was flat at Rs1,396 crores compared to Q3FY24 mainly due to the impact of custom duty reduction on gold.
Business Performance (Standalone):
Jewellery: Total Income for the quarter grew 26% over Q3FY24 to Rs14,697 crores. The India business grew 25% in the same period. The festive quarter brought consumer cheer with secondary sales recording an impressive 28% growth buoyed by higher gold prices, wedding related purchases growing by 29% and healthy same store sales growth of 22% respectively compared to Q3FY24. Gold jewellery and coins continued to be a preferred choice amongst consumers, together, clocking a strong 27% growth ?over Q3FY24. EBIT at Rs1,398 crores came at a margin of 9.5% for the quarter. Normalizing for the custom duty impact of Rs253 crores, Q3FY25 EBIT was Rs1,651 crores, clocking a 11.2% margin. During the quarter Tanishq opened 11 new stores (net) while Mia added 13 stores in the domestic market.
Watches & Wearables: Business recorded a Total Income of Rs1,128 crores, up 15% over Q3FY24. The domestic business grew 14% in the same period. Analog segment recorded a robust of 20% growth? over Q3FY24? primarily led by Titan brand clocking 18% growth in the same period. Consumer preferences for premium brands was also visible with international brand sales clocking a healthy retail growth of 30% over Q3FY24. Wearables segment declined by 20% with both Average Selling Prices and volumes declining by 8% and 7% respectively compared to Q3FY24. EBIT came in at Rs111 crores clocking a margin of 9.8% for the quarter. 23 stores (net) were added in Q3FY25 comprising of 12 stores in Titan World, 10 in Helios and 1 in Fastrack respectively.
EyeCare: Total Income of Rs194 crores in Q3FY25 grew 16% over Q3FY24. International brand sales recorded a strong growth 56% over Q3FY24. Within product categories, Sunglasses sales outpaced others growing 35% while Frames and Lenses grew in mid-double digits over their respective Q3FY24 numbers. Business recorded an EBIT of Rs21 crores clocking a margin of 10.8% for the quarter. Division closed 3 new stores (net) during the quarter in Titan Eye+.
Emerging Businesses: The Emerging Businesses comprising of Indian Dress Wear (‘Taneira’), Fragrances, Fashion Accessories (F&FA) recorded a Total Income of Rs118 crores growing 5% over Q3FY24. Taneira recorded flattish sales for the quarter. Fragrances recorded a healthy growth of 27% over Q3FY24 led by 23% growth in SKINN. Within Fashion Accessories, excluding the discontinued Belts & Wallets segment, Women’s Bags (IRTH & Fastrack) clocked an impressive growth of 25% over the same period last year. The Emerging Businesses together recorded a loss of Rs32 crores for the quarter. During the quarter, IRTH opened its first store in Mumbai, followed by a store opening in Chennai. Taneira opened 1 new store in Salem, Tamil Nadu during the quarter, taking the total store count to 82 stores covering 42 cities?.
International Business Performance (Consolidated):
The International Jewellery business recorded an income growth of 64% to Rs569 crores compared to Q3FY24, largely led by growth from North America region and new store expansions. Other Businesses comprising primarily of analog watches grew 86% compared to Q3FY24. During the quarter, 2 new Tanishq stores were opened, one in Dubai and Seattle each. The Jewellery international footprint stands at 20 stores consisting of 18 Tanishq stores and 2 Mia stores. Titan Eye+ international presence stands at 4 stores.
Key Subsidiaries of the Company:
CaratLane Trading Private Limited: Total Income grew 27% to Rs1,117 crores compared to Q3FY24 (excluding bullion and digi-gold sales). Activations and promotions during the festive quarter led to 22% growth in brand searches. EBIT came in at Rs131 crores for Q3FY25 clocking a margin of 11.7%. During the quarter, CaratLane added 19 new stores (net) in India taking the total India store count to 305 stores spread across 128 cities. The brand opened its first international store in New Jersey, USA in this quarter.
Titan Engineering & Automation Limited: The Business recorded a Total Income of Rs193 crores in Q3FY25, declining by 4% compared to Q3FY24. Within Divisions, the Automation Solutions (AS) Revenue declined by 14% and the Manufacturing Services Revenue grew 12% in the same period respectively. EBIT for the quarter came in at Rs33 crores clocking a margin of 17%. Commenting on Titan’s quarterly performance,
Mr. C K Venkataraman, Managing Director of the Company stated that: “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 fiscal year, growing well in excess of 25% at a retail level. Consumer preference for gold, both as adornment jewellery and as a store of value continued to remain fairly strong. Our analog watches clocked a healthy retail growth of 20%, reinforcing Titan's customer value proposition in the eyes of the consumer. EyeCare's retail growth returning to double-digits was encouraging.
?The custom duty related losses on the inventory (held at the time of the duty change) have been fully realized in this quarter and hence the profitability is lower to that extent. We are committed to investing in the growths of all our businesses and specifically the emerging ones to help them scale faster. We remain optimistic on our performance and hope to end the fiscal year with a good growth over FY24.”
Conference Call:
The earnings conference call is scheduled on 5th February 2025, at 8:15 AM. The call details are available at https://www.titancompany.in/investors/investor-relations/quarterly-results
