Titan Q2 Results: India's Largest Jewellery Maker's Earns Consolidated PAT Of Rs 916 Crore, Revenue Up 38%

India's largest jewellery maker in terms of market share, Titan Company has posted double-digit growth in earnings for the quarter ending September 30, 2023. The Tata Group-backed company earned a net profit of Rs 916 crore on a consolidated basis in Q2FY24, rising by 10% from Rs 835 crore in the same quarter a year ago.

Consolidated revenue from operations which includes sales of products and services along with other operating revenues, came in at Rs 12,529 crore in Q2FY24, rising by a whopping 36.73% from Rs 9,163 crore in Q2 of the previous fiscal.

Consolidated EBIT climbed by 16% YoY to Rs 1,392 crore in the quarter under review.

Standalone PAT was also up by 10% to Rs 940 crore, while total income was up 21% YoY to Rs 10,027 crore.

CK Venkataraman, Managing Director of the Company said, "All our consumer businesses achieved healthy growth for the quarter. The Watches and Wearables business crossed quarterly revenues of,1,000+ crores, an important milestone in their journey. The Jewellery business continued to shine well growing nearly 27% in consumer sales over the last year. The store expansions in key markets are progressing well."

Here's how Titan performed on a segment-wise basis in Q2FY24:

1. Jewellery:

Total Income stood at Rs 8,575 crores, recording an increase of 19% compared to Q2FY23. The Business witnessed healthy double-digit growths in both buyers and average bill value per buyer during this period. EBIT came in at Rs 1,206 crore clocking an EBIT margin of 14.1% for Q2FY24 helped by better studded share in the portfolio.

The segment made notable expansions in stores. Tanishq expanded its presence in Gulf Co-operation Countries (GCC) to enter Qatar with 2 new stores in Doha. Tanishq's international presence now stands at 10 stores including one store in New Jersey, USA. Zoya entered the state of Gujarat by opening its first store at Palladium Mall, Ahmedabad during the quarter. With this expansion, the niche luxury jewellery brand is now present in 8 stores spread across the cities of Mumbai, New Delhi, Bengaluru, Gurgaon, Hyderabad, and Ahmedabad.

2. Watches & Wearables:

The segment recorded a Total Income of Rs 1,092 crore, up by 32% compared to Q2FY23 crossing over Rs 1,000 crore of quarterly revenues for the first time in its journey.

Analog watches Revenues were at Rs 870 crore, up by 22% compared to Q2FY23 whereas the Wearables portfolio achieved Revenues of Rs 175 crore growing by 131% in the same period.

Premiumization theme continued to work well for Titan and international brands (Helios) exhibiting strong double-digit growths in the analog segment. In Wearables, Fastrack brand nearly quadrupled in volumes contributing a significant share to the growth in Business. EBIT came in at Rs 160 crore with an EBIT margin of 14.7% for Q2FY24.

3. EyeCare:

Total Income here was at Rs188 crore in Q2FY24, up by 13% compared to Q2FY23. EBIT for the business came in at Rs 28 crore, clocking a margin of 14.9% for the quarter.

4. Emerging Businesses:

Total Income came in at Rs 93 crore for the Emerging Businesses comprising of Fragrances, Fashion Accessories (F&FA) and Indian Dress Wear (Taneira) for Q2FY24, rising by 27% compared to the same period last year.

The F&FA business grew by 4% compared to Q2FY23. In subsegments, Fragrances grew 12% and Women's Bags, led by 'IRTH' brand, clocked a healthy 31% growth compared to Q2FY23. The other fashion accessories business comprises belts and wallets however was lower by 40% during this same period.

Taneira's business grew by 64% compared to Q2FY23 driven by festive collections and campaigns around Onam, Varamahalakshmi, Ganesh Chaturthi, Raksha Bandhan and Teej, actively promoted on digital platforms.

Furthermore, key subsidiaries like CaratLane and Titan Engineering gave a steady quarter.

Caratlane Trading Private Limited:

Total Income grew by 45% to Rs 650 crore as compared to Q2FY23. Meanwhile, EBIT came in at Rs 26 crore for Q2FY24, clocking a margin of 4%.

Titan Engineering & Automation Limited:

The Business recorded a Total Income of Rs 125 crore in Q2FY24, a growth of 2% compared to Q2FY23. The Automation Solutions order flow for the quarter nearly tripled compared to the same period last year resulting in a closing order book position of more than Rs 600 crore at the end of Q2FY24. EBIT for the quarter was Rs 20 crore at a margin of 16%.

Titan's share price ended at Rs 3,272.55 apiece, up by Rs 71.25 or 2.23% after market hours of Friday, emerging as the top gainer on Sensex. The company's m-cap stood at Rs 2,90,532.46 crore.

Going ahead, Venkataraman said, "We retain our focus on improving market share by offering differentiated products to our consumers touching their everyday lives in a meaningful way. The festive season in Q3 has started well and we are optimistic for our performance in the rest of the financial year."