The shares of Titan Company Ltd were trading at ₹3,137.90 down by ₹92.35 or 2.86 per cent on the NSE today at 11.10 am.
Titan reported a 25 per cent decline in net profit for the second quarter of FY25, with profit falling to ₹705 crore from ₹940 crore in the same period last year.
The company’s total income for the quarter rose by 24 per cent to ₹12,458 crore, up from ₹10,027 crore in Q2 FY24.
Titan saw significant demand in its jewellery segment after the customs duty on gold imports was reduced. This cut led to a “gold rush” as consumers took advantage of temporarily lower prices, sustaining strong sales momentum until mid-September.
Total income from jewellery increased by 26 per cent year-over-year to ₹10,763 crore. However, profitability in this segment was impacted; EBIT for jewellery came in at ₹932 crore with a margin of 8.7 per cent. Adjusting for the customs duty impact, EBIT would have been ₹1,222 crore, resulting in a 11.4 per cent margin.
The company also reported a 17.5 per cent decline in consolidated Earnings before Interest & Tax (EBIT), which fell to ₹1,128 crore from ₹1,367 crore in Q2 FY24.
Titan’s managing director CK Venkataraman noted that the second quarter showed healthy growth across core businesses following a muted first quarter.
“Jewellery clocked healthy double-digit growth for the quarter,” he said, adding that consumer demand rose across both gold and studded product categories, supported by Titan’s brand portfolio including Tanishq, Mia, Zoya, and Caratlane.
The watches and wearables division, which includes Fastrack and Xylys, grew by 19 per cent in revenue to ₹1,301 crore, driven by strong demand in the analogue watches segment.
Overall, Titan’s consolidated sales increased nearly 26 per cent to ₹13,473 crore during the quarter.
