Q4FY23 Preview: Titan Company: Revenue seen at Rs 85,997 million, PAT at Rs 8,214 million

1 May 2023 , 07:20 PM

Result date: 3^rd May, 2023

Recommendation: Buy

Target price: Rs 2,800

The company’s Jewellery sales (ex-bullion) grew by 23% over the year-ago quarter, driven by buyer growth in both new and repeat customers and increase in ticket size. While large ticket size purchase continued to perform well, entry-level and lower-price brands saw normalization in buyer growth. The company witnessed robust demand in January and February; but saw moderation in March due to spike in gold prices.

Watches revenue grew by 41% over the year-ago quarter, led by strong growth in analog watches and almost tripling of revenues in wearables. Eyewear sales grew by 22% as compared to the year-ago quarter with Titan Eye+ growing by healthy double-digit.

Analysts at IIFL Capital Services expect jewellery EBIT margin (ex-bullion) of 12.9%, an expansion of 30 basis points. 

The company’s Profit After Tax (PAT) could grow 55.4% over the year-ago quarter.

Important management insights to watch out for:

• Demand trends across markets and product segments
• Margin outlook

Rs Million	March 2023 estimates	YoY change
Revenue	85,997	25.0%
EBITDA	11,832	51.3%
Profit After Tax	8,214	55.4%

Source: IIFL Research