Bengaluru, 4th February 2025 – Titan Company Limited (NSE: TITAN, BSE: 500114) reported a 25.5% year-on-year (YoY) increase in consolidated revenue for Q3 FY2024-25, reaching ₹17,723 crores compared to ₹14,122 crores in Q3 FY2023-24. However, profitability remained under pressure due to custom duty changes on gold, affecting the company's bottom line.
Key Financial Highlights (Q3 FY2024-25 vs. Q3 FY2023-24)
| Particulars (₹ crores) | Standalone Q3 FY24 | Standalone Q3 FY25 | YoY % | Consolidated Q3 FY24 | Consolidated Q3 FY25 | YoY % |
|---|---|---|---|---|---|---|
| Total Income | 13,071 | 16,228 | 24.2% | 14,122 | 17,723 | 25.5% |
| EBIT | 1,478 | 1,506 | 1.9% | 1,547 | 1,627 | 5.2% |
| EBIT Margin (%) | 11.3% | 9.3% | (203) bps | 11.0% | 9.2% | (177) bps |
| Profit Before Tax (PBT) | 1,345 | 1,320 | (1.9%) | 1,378 | 1,396 | 1.3% |
| PBT Margin (%) | 10.3% | 8.1% | (216) bps | 9.8% | 7.9% | (188) bps |
| Profit After Tax (PAT) | 1,040 | 990 | (4.9%) | 1,053 | 1,047 | (0.6%) |
| PAT Margin (%) | 8.0% | 6.1% | (186) bps | 7.5% | 5.9% | (155) bps |
The revenue growth was primarily driven by strong performances in the Jewellery, Watches & Wearables, and EyeCare segments. The profit decline is attributed to the impact of custom duty reduction on gold inventory.
Segment-wise Performance (Standalone Q3 FY2024-25)
Jewellery
- Revenue grew 26% YoY to ₹14,697 crores.
- The India jewellery business grew 25%, driven by 28% growth in secondary sales, higher gold prices, and wedding-related purchases, which saw 29% YoY growth.
- EBIT margin stood at 9.5%, impacted by a ₹253 crore custom duty-related loss. Adjusted EBIT (excluding this impact) was ₹1,651 crores, reflecting an 11.2% EBIT margin.
- Store Expansion: Tanishq added 11 stores (net), and Mia expanded with 13 new stores.
Watches & Wearables
- Revenue increased 15% YoY to ₹1,128 crores.
- The analog segment recorded 20% YoY growth, led by the Titan brand's 18% growth.
- Wearables segment declined by 20%, with both ASPs and volumes decreasing by 8% and 7%, respectively.
- EBIT rose to ₹111 crores, reflecting a 9.8% margin.
- 23 new stores added, including Titan World (12), Helios (10), and Fastrack (1).
EyeCare
- Revenue rose 16% YoY to ₹194 crores.
- International brand sales surged 56% YoY, while sunglasses sales grew 35% YoY.
- EBIT for the quarter stood at ₹21 crores, achieving a 10.8% margin.
- 3 new stores were opened in Titan Eye+.
Emerging Businesses (Indian Dress Wear, Fragrances & Accessories)
- Revenue increased 5% YoY to ₹118 crores.
- Fragrances saw a strong 27% growth, led by 23% growth in SKINN.
- Taneira sales were flat.
- EBIT loss widened to ₹32 crores.
International Business Performance
- The International Jewellery segment grew 64% YoY to ₹569 crores, led by North America expansion and new stores in Dubai and Seattle.
- Other businesses (watches, EyeCare, fashion accessories) grew 86% YoY.
- Jewellery international footprint: 20 stores (18 Tanishq + 2 Mia).
- Titan Eye+ international stores: 4 locations in GCC.
Key Subsidiaries Performance
CaratLane Trading Private Limited
- Revenue grew 27% YoY to ₹1,117 crores.
- EBIT stood at ₹131 crores, reflecting an 11.7% margin.
- 19 new stores added, bringing the total store count to 305 across 128 cities in India.
- First international store opened in New Jersey, USA.
Titan Engineering & Automation Limited (TEAL)
- Revenue declined 4% YoY to ₹193 crores.
- EBIT increased 31% YoY to ₹33 crores (17% margin).
- Automation Solutions revenue fell 14%, while Manufacturing Services grew 12%.
Management Commentary
C.K. Venkataraman, Managing Director, stated: "The festive quarter firmly established the FY25 growth trajectory after a muted Q1 and healthy Q2. Jewellery saw its strongest quarter, growing well over 25% at retail. Consumer preference for gold remains strong. Our analog watches recorded 20% growth, reinforcing Titan's value proposition. The custom duty-related losses on inventory have been fully realized this quarter, affecting profitability. However, we remain committed to investing in growth and emerging businesses. We expect a strong close to FY25."Strategic Outlook
- Expansion Plans: Continued store additions across Jewellery, Watches, EyeCare, and Emerging Businesses.
- International Growth: Strengthening global presence, especially in North America and GCC markets.
- Digital & E-Commerce Focus: Strong push in digitally influenced sales.
- Profitability Recovery: Custom duty-related inventory loss was a one-time impact; underlying business fundamentals remain strong.