Titan Q3 Results: Net Profit Rises 91% On Wedding, Festive Demand
Titan’s net profit rose 91% year-on-year to Rs 1,004 crore in the quarter ended December.
Titan Company Ltd.’s quarterly profit surged, beating estimates, driven by a strong festive and wedding season demand across its consumer businesses.
Net profit of the country’s largest branded jewellery maker rose 91% year-on-year to Rs 1,004 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 871.28-crore consensus estimate of analysts tracked by Bloomberg.
Revenue of the owner of “Tanishq” brand and namesake watches rose 32% over the year earlier to Rs 10,037 crore—against the Rs 7,426.53-crore forecast.
Sales in its mainstay jewellery segment, accounting for 90% of total revenue, rose 32.5% year-on-year and 37.8% sequentially to Rs 9,059 crore. Excluding the sale of bullion, jewellery sales rose 37% year-on-year.
Other Q3 FY22 Highlights (YoY)
Operating profit rose 70% to Rs 1,442 crore, compared with the Rs 1,294.78-crore projection.
Margin expanded to 14.4% from 11.1%. Analysts had pegged it at 17.4%.
“The festive purchases has driven Titan’s strong growth in all businesses. The quarter has turned out to be one of the best in terms of growth and profitability,” Managing Director CK Venkataraman said in a statement. But the onset of the third wave has slowed down the momentum.
Of its key subsidiaries, CaratLane Trading Pvt. “continued to do well” in both online and offline channels, emerging as a strong omni player.
During the quarter, it clocked a revenue growth of 63.4% at Rs 446 crore. The company has added 149 retail stores, including CaratLane, during the April-December period, taking its total store count to 2,064 in 323 towns, spread across 2.7 million square feet.
Titan Engineering & Automation Ltd. recorded revenue worth Rs 79 crore against Rs 87 crore a year ago. “The automation solutions business is showing encouraging signs with new orders coming in from different industry verticals,” the company said.
Shares of Titan fell almost 2%, the biggest intraday decline in six sessions, after the results were announced. But the stock closed with gains of 0.44% compared with a 1.24% fall in the Nifty 50.