Titan share price will be in focus on Tuesday as the company will announce its Q2 results today. The Tata Group jewellery and watches maker, Titan Company, will declare its earnings for the second quarter ended September 2024 later today.
In its Q2 business update, Titan Company said it achieved approximately 25% YoY growth in the second quarter of FY25, according to its quarterly business update. Jewellery domestic operations saw approximately 25% YoY growth in Q2, following a relatively modest performance in Q1.
The Tata Group-owned company added a net total of 75 stores during the period, expanding its retail network to 3,171 stores, it said.
According to estimates by Kotak Institutional Equities, Titan Company is expected to report around a 27% year-on-year (YoY) drop in its Q2FY25 net profit due to one-time exceptional charge.
The company is estimated to record a one-time inventory loss of ₹3,250 crore assuming about 70% of overall impact pertaining to custom duty cut in Q2 and it would be likely classified as an exceptional item.
The company’s revenue during July-September quarter is expected to rise 2.2% YoY to ₹11,920 crore, with 21% growth in standalone jewellery sales, excluding sale of gold bullion, as near-term demand was boosted by the custom duty cut.
“We do not rule out some pent-up demand given softness in Q1, following the steep rise in gold prices. We expect about 300 bps drop in salience of studded jewelry to 30%, partly due to pent-up demand in gold and partly due to underlying weakness in studded jewellery sales (about 15-30% drop in natural diamond prices + some impact of LGDs on consumer sentiment),” Kotak Equities said.
The brokerage firm estimates 15% growth in Titan’s watches division, and 10% growth in eyewear segment.
It estimates like-for-like (LFL) recurring standalone jewelry EBIT margin to decline 80 bps YoY to 13.3%, due to decline in the studded share (down 300 bps YoY to 30%) and marginal cut in diamond prices and impact of ongoing rationalization of gold rate mark-up, higher investments in gold exchange program, other promotional offers would be largely offset by the intermittent easing of competitive pressure following import duty cut.
Titan’s FY2025 consolidated jewelry EBIT margin guidance band is 11.5% – 12.5%. Kotak Equities estimates 11% EBIT margin for watches and eyewear segments in Q2FY25.
Titan Share Price
Titan share price has fallen 12% in one month and more than 8% in six months. The Tata Group stock is down over 12% year-to-date (YTD) as against 9% gain on Sensex.
On Monday, Titan shares ended 2.06% lower at ₹3,225.65 apiece on the BSE.
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