Q3FY23 Preview: Titan Company: Revenue seen at Rs105,892 million, PAT at Rs9,740 million
30 Jan, 2023 |
4:50 PM
Profitability pressure likely
Result date: 2nd February, 2023
Recommendation: Add
Target price: Rs 3,000
Titan Company (Titan) could post healthy revenue growth, benefiting from strong festival and wedding season as well as healthy store expansion. The Jewellery business (ex-bullion) grew by 11% YoY translating into a 3-year CAGR of 21%. Growth was driven by healthy new-buyer growths in the festive period, higher value purchases in the Studded category and unique new collections for the season.
Sales of Watches & Wearables grew 14% YoY with the 3-year CAGR accelerating to 9% from 5% in Q2. In Eyewear, sales grew by 10% YoY with 3-year CAGR accelerating to 9% from 3% in Q2. With regard to EBIT margin, in Jewellery division, analysts at IIFL Securities forecast margin of 13.3% from 13.6% in Q3FY22 (excluding 100bps one-off). Overall EBIT could slip 1.1% over the year-ago quarter.
Profit After Tax (PAT) could decline 1.3% on a YoY basis.
