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For quarter ending June 2024, consolidated Net sales (including other operating income) of Titan Company has increased 11.51% to Rs 13266 crore compared to quarter ended June 2023. Sales of Watches & Clocks segment has gone up 12.05% to Rs 1,023.00 crore (accounting for 7.68% of total sales). Sales of Jewellery segment rose 10.40% to Rs 11,808.00 crore (accounting for 88.66% of total sales). Sales of eyewear segment has gone up 3.45% to Rs 210.00 crore (accounting for 1.58% of total sales). Sales of Others segment has gone up 102.19% to Rs 277.00 crore (accounting for 2.08% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 8.56% to Rs 1,217.00 crore. PBIT of Watches & Clocks segment rose 9.90% to Rs 111.00 crore (accounting for 9.12% of total PBIT). PBIT of Jewellery segment rose 7.83% to Rs 1,102.00 crore (accounting for 90.55% of total PBIT). PBIT of eyewear segment fell 45.71% to Rs 19.00 crore (accounting for 1.56% of total PBIT). PBIT of Others segment rose 59.46% to Rs -15.00 crore (accounting for -1.23% of total PBIT). PBIT margin of Watches & Clocks segment fell from 11.06% to 10.85%. PBIT margin of Jewellery segment fell from 9.55% to 9.33%. PBIT margin of eyewear segment fell from 17.24% to 9.05%. PBIT margin of Others segment rose from negative 27.01% to negative 5.42%. Overall PBIT margin fell from 9.38% to 9.14%. Operating profit margin has declined from 9.46% to 9.40%, leading to 10.84% rise in operating profit to Rs 1,247.00 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 65.27% to 68.65%. Purchase of finished goods cost rose from 10.46% to 11.55%. Employee cost decreased from 4.12% to 3.54%. Other expenses fell from 9.82% to 7.84%. Selling and administration expenses fell from 2.52% to 1.96%. Advertisements cost fell from 2.52% to 1.96%. Other income rose 5.26% to Rs 120 crore. PBIDT rose 10.33% to Rs 1367 crore. Provision for interest rose 111.01% to Rs 230 crore. PBDT rose 0.62% to Rs 1137 crore. Provision for depreciation rose 28.13% to Rs 164 crore. Profit before tax down 2.89% to Rs 973.00 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 258 crore, compared to Rs 246 crore. Effective tax rate was 26.52% compared to 24.55%. Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 5.05% to Rs 715.00 crore. Promoters’ stake was 52.90% as of 30 June 2024 ,compared to 52.90% as of 30 June 2023 .
Full year results analysis.
Net sales (including other operating income) of Titan Company has increased 25.90% to Rs 51084 crore. Sales of Watches and Wearables segment has gone up 18.73% to Rs 3,930.00 crore (accounting for 7.66% of total sales). Sales of Jewellery segment rose 26.76% to Rs 45,524.00 crore (accounting for 88.71% of total sales). Sales of eyewear segment has gone up 5.37% to Rs 726.00 crore (accounting for 1.41% of total sales). Sales of Others segment has gone up 41.37% to Rs 1,138.00 crore (accounting for 2.22% of total sales). Profit before interest, tax and other unallocable items (PBIT) has jumped 9.18% to Rs 5,290.00 crore. PBIT of Watches and Wearables segment fell 3.68% to Rs 393.00 crore (accounting for 7.43% of total PBIT). PBIT of Jewellery segment rose 9.69% to Rs 4,812.00 crore (accounting for 90.96% of total PBIT). PBIT of eyewear segment fell 18.37% to Rs 80.00 crore (accounting for 1.51% of total PBIT). PBIT of Others reported profit of Rs 5.00 crore compared to loss of Rs 48.00 crore. PBIT margin of Watches and Wearables segment fell from 12.33% to 10.00%. PBIT margin of Jewellery segment fell from 12.22% to 10.57%. PBIT margin of eyewear segment fell from 14.22% to 11.02%. PBIT margin of Others segment rose from negative 5.96% to 0.44%. Overall PBIT margin fell from 11.90% to 10.31%. Operating profit margin has declined from 12.02% to 10.36%, leading to 8.46% rise in operating profit to Rs 5,292.00 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 62.82% to 67.16%. Purchase of finished goods cost fell from 13.31% to 11.16%. Employee cost decreased from 3.85% to 3.47%. Other expenses fell from 8.63% to 8.36%. Selling and administration expenses fell from 2.26% to 2.14%. Advertisements cost fell from 2.26% to 2.14%. Other income rose 73.05% to Rs 533 crore. PBIDT rose 12.30% to Rs 5825 crore. Provision for interest rose 106.33% to Rs 619 crore. Loan funds rose to Rs 15,528.00 crore as of 31 March 2024 from Rs 9,367.00 crore as of 31 March 2023. Inventories rose to Rs 19,051.00 crore as of 31 March 2024 from Rs 16,584.00 crore as of 31 March 2023. Sundry debtors were higher at Rs 1,018.00 crore as of 31 March 2024 compared to Rs 674.00 crore as of 31 March 2023. Cash and bank balance rose to Rs 1,526.00 crore as of 31 March 2024 from Rs 1,343.00 crore as of 31 March 2023. Investments declined from Rs 2,515.00 crore as of 31 March 2023 to Rs 2,345.00 crore as of 31 March 2024. PBDT rose 6.53% to Rs 5206 crore. Provision for depreciation rose 32.43% to Rs 584 crore. Fixed assets increased to Rs 3,369.00 crore as of 31 March 2024 from Rs 3,019.00 crore as of 31 March 2023. Intangible assets increased from Rs 123.00 crore to Rs 437.00 crore. Profit before tax grew 3.96% to Rs 4,622.00 crore. Provision for tax was expense of Rs 1127 crore, compared to Rs 1173 crore. Effective tax rate was 24.38% compared to 26.38%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 7.57% to Rs 3,496.00 crore. Equity capital stood at Rs 89.00 crore as of 31 March 2024 to Rs 89.00 crore as of 31 March 2023. Per share face Value remained same at Rs 1.00. Promoters’ stake was 52.90% as of 31 March 2024 ,compared to 52.90% as of 31 March 2023 . Cash flow from operating activities increased to Rs 1,695.00 crore for year ended March 2024 from Rs 1,370.00 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 691.00 crore, compared to Rs 432.00 crore during the year ended March 2023. Other Highlights
In
Q1 FY25, The India business grew 8% YoY and Watches &
Wearables increased 15%. While volumes in Wearables
segment clocked healthy growth, the average selling prices continued to decline
leading to a 6% drop in Revenue compared to Q1FY24.
In
Q1 FY25, EyeCare reported 3% YoY growth. CaratLane grew
30% YoY to Rs 832 crore.
In
Q1 FY25, Tanishq expanded its international presence
adding a new store in Muscat, Oman taking Titan`s Jewellery international
footprint to 17 stores. During the quarter, in India, Tanishq opened 11 new
stores (net), Mia added 19 and Zoya added 3 stores respectively. Zaya opened
its first store in the cities of Chennai and Pune.
In
Q1 FY25, The Emerging Businesses comprising of Indian
Dress Wear (`Taneira`), Fragrances, Fashion Accessories (F&FA) recorded 5%
YoY growth. The F&FA business grew 1% compared to Q1 FY24 (excluding the
discontinued belts and wallets sub-segment, comparable growth was 16% over Q1
FY24).
Management Comments :
Mr.
CK Venkataraman, Managing Director of the Company stated that: "In the
recently presented Union Budget, the custom duty on gold imports in the country
has been reduced from 15% to 6%. This development has long term positive
implications for the Jewellery industry. While this change is likely to entail
a short-term impact in the form of value loss on duty paid gold inventory
(expected to be expensed over the next two quarters), we remain optimistic on
the longer-term benefits as it makes the market equitable for large businesses
like ours. Our first quarter performance reflects mixed consumer trends in
lifestyle categories. While the inclement weather conditions during the
summers, general elections and lower wedding days impacted retail walk-ins, the
growth metrics in Watches & Wearables and EyeCare were quite healthy.
Notwithstanding some of these nearterm variations, Titan is steadfastly
pursuing market share gains across all business cat egories and is well
equipped to provide a differentiated retail experience to our valued customers.
We remain optimistic about our performance for rest of the financial
year."
| Titan Company : Consolidated Results | | | Quarter ended | Year ended |
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| Particulars | 202406 | 202306 | Var.(%) | 202403 | 202303 | Var.(%) |
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| Net Sales (including other operating income) | 13,266.00 | 11,897.00 | 11.51 | 51,084.00 | 40,575.00 | 25.90 | | OPM (%) | 9.40 | 9.46 | -6 bps | 10.36 | 12.02 | -167 bps | | OP | 1,247.00 | 1,125.00 | 10.84 | 5,292.00 | 4,879.00 | 8.46 | | Other Inc. | 120.00 | 114.00 | 5.26 | 533.00 | 308.00 | 73.05 | | PBIDT | 1,367.00 | 1,239.00 | 10.33 | 5,825.00 | 5,187.00 | 12.30 | | Interest | 230.00 | 109.00 | 111.01 | 619.00 | 300.00 | 106.33 | | PBDT | 1,137.00 | 1,130.00 | 0.62 | 5,206.00 | 4,887.00 | 6.53 | | Depreciation | 164 | 128 | 28.13 | 584 | 441 | 32.43 | | PBT | 973.00 | 1,002.00 | -2.89 | 4622 | 4446 | 3.96 | | Share of Profit/(Loss) from Associates | 0 | 0 | - | 1 | 1 | 0 | | PBT before EO | 973 | 1002 | -2.89 | 4623 | 4447 | 3.96 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 973 | 1002 | -2.89 | 4623 | 4447 | 3.96 | | Taxation | 258 | 246 | 4.88 | 1127 | 1173 | -3.92 | | PAT | 715 | 756 | -5.42 | 3496 | 3274 | 6.78 | | Minority Interest (MI) | 0 | 3 | - | 0 | 24 | - | | Net profit | 715 | 753 | -5.05 | 3496 | 3250 | 7.57 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 715 | 753 | -5.05 | 3496 | 3250 | 7.57 | | EPS (Rs)* | 8.05 | 8.48 | -5.05 | 39.38 | 36.61 | 7.57 | | | * EPS is on current equity of Rs 88.78 crore, Face value of Rs 1, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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| Titan Company : Consolidated Segment Results | | | Quarter ended | Year ended |
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| % of (Total) | 202406 | 202306 | Var.(%) | % of (Total) | 202403 | 202303 | Var.(%) |
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| Sales | | Watches & Clocks | 7.68 | 1,023.00 | 913.00 | 12.05 | 7.66 | 3,930.00 | 3,310.00 | 18.73 | | Time Products | 0.00 | 0.00 | 0.00 | - | | Jewellery | 88.66 | 11,808.00 | 10,696.00 | 10.40 | 88.71 | 45,524.00 | 35,914.00 | 26.76 | | eyewear | 1.58 | 210.00 | 203.00 | 3.45 | 1.41 | 726.00 | 689.00 | 5.37 | | Others | 2.08 | 277.00 | 137.00 | 102.19 | 2.22 | 1,138.00 | 805.00 | 41.37 | | Total Reported Sales | 100.00 | 13,318.00 | 11,949.00 | 11.46 | 100.00 | 51,318.00 | 40,718.00 | 26.03 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 13,318.00 | 11,949.00 | 11.46 | 100.00 | 51,318.00 | 40,718.00 | 26.03 | | PBIT | | Watches & Clocks | 9.12 | 111.00 | 101.00 | 9.90 | 7.43 | 393.00 | 408.00 | -3.68 | | Time Products | 0.00 | 0.00 | 0.00 | - | | Jewellery | 90.55 | 1,102.00 | 1,022.00 | 7.83 | 90.96 | 4,812.00 | 4,387.00 | 9.69 | | eyewear | 1.56 | 19.00 | 35.00 | -45.71 | 1.51 | 80.00 | 98.00 | -18.37 | | Others | -1.23 | -15.00 | -37.00 | 59.46 | 0.09 | 5.00 | -48.00 | LP | | Total PBIT | 100.00 | 1,217.00 | 1,121.00 | 8.56 | 100.00 | 5,290.00 | 4,845.00 | 9.18 | | Less : Interest | | 230.00 | 109.00 | 111.01 | | 619.00 | 300.00 | 106.33 | | Add: Other un-allcoable | | -14.00 | -10.00 | -40.00 | | -48.00 | -98.00 | 51.02 | | PBIT Margin(%) | | Watches & Clocks | | 10.85 | 11.06 | -21.20 | | 10.00 | 12.33 | -232.63 | | Time Products | | 0.00 | 0.00 | 0.00 | | Jewellery | | 9.33 | 9.55 | -22.23 | | 10.57 | 12.22 | -164.50 | | eyewear | | 9.05 | 17.24 | -819.38 | | 11.02 | 14.22 | -320.42 | | Others | | -5.42 | -27.01 | 2,159.21 | | 0.44 | -5.96 | 640.21 | | PBT | 100.00 | 973.00 | 1,002.00 | -2.89 | 100.00 | 4,623.00 | 4,447.00 | 3.96 |
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