Titan shares plunge 8% on weak Q1 profit

5 Aug 2024 , 12:18 PM

Titan shares slumped about 7.5% on Monday to a day’s low of ₹3,201 on the BSE, after the company announced a 1% YoY decline in standalone net profit to ₹770 crore for the quarter ended June 30, 2024.

The overall revenue from operations was ₹11,263 crore, up 9.3% from the previous year’s corresponding period of ₹10,306 crore.

Despite a worse quarter, most investors remain positive about the company’s near-term development, according to news reports.

Titan reported a poor start to the year in Q1FY25, with 9% YoY growth in the jewellery industry, owing mostly to a lack of wedding dates in a quarter known for its bustling wedding calendar. This, together with the elections, had a detrimental impact on growth. What jumped out was the margin resilience, which improved year on year as a result of cost-cutting initiatives.

The next growth drivers would be the expansion of the international segment, Mia, and CaratLane. By lowering customs duties on gold, the government has effectively discouraged unlawful imports while also boosting consumer demand.

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