Titan’s Q2 net profit falls 23% y-o-y to ₹704 Crore

6 Nov 2024 , 09:45 AM

Titan, a Tata Group-owned lifestyle items retailer, announced on Tuesday that its consolidated earnings for the quarter ended September 2024 decreased 23.1% to ₹704 Crore year on year (YoY), mostly due to the impact of customs duty reductions.

Titan’s total revenue increased by 26% year on year to ₹13,660 Crore in the quarter.

Titan’s flagship jewels industry saw its total income for the quarter increase 26% over Q2FY24 to ₹10,763 Crore. For the quarter, it earned ₹932 Crore in EBIT from the jewellery category, representing an 8.7% margin. Normalising for customs duties, Q2FY25 EBIT was ₹1,222 Crore, with a 11.4% margin.

The customs duty cut rekindled consumer interest as gold prices momentarily fell. The resulting gold rush lasted until mid-September. Buyer growth was healthy and accompanied by a rise in average selling prices, both of which grew by double digits,” Titan said in a filing.

Tanishq established 11 new outlets in India during the quarter, while Mia added 12 and Zoya added one. 

Tanishq established 11 new outlets in India during the quarter, while Mia added 12 and Zoya added one. 

The profitability of Q2 was quite low due to customs duty losses and the necessity to invest in the growth of numerous enterprises. However, we are quite confident in the competitiveness of each of our businesses and are hopeful about our performance for the remainder of the fiscal year,” Venkataraman said.

Titan’s watch and wearables business grew by 19% during the quarter. The wearables segment showed a 13% dip in revenue compared to Q2FY24, mostly owing to lower average selling prices. 

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