Titan Q2 Results: Net profit drops 23% YoY to ₹704 crore; total income grows 26%

The company had posted profit of ₹916 crore in the year-ago period. 

Total income came in at ₹13,660 crore, up 26% YoY from ₹10,837 crore in the September 2023 quarter.

EBITDA slipped 11.5% YoY to ₹1,358 crore from ₹1,535 crore registered in the corresponding quarter of the previous fiscal, as per the company's investor presentation.

Commenting on Titan's Q2 performance, CK Venkataraman, Managing Director, said, "“After a muted Q1, Q2 witnessed encouraging growth across key businesses. Jewellery clocked healthy double-digit growth for the quarter. Our portfolio approach in this business of straddling diverse customer needs through the brands of Tanishq, Mia, Zoya, and CaratLane is working well. The buyer growth metrics were fairly strong and in good double-digits across gold and studded product categories."

The quarter also witnessed analog watches growing 25%+ over last year with a commensurate uptick in volumes. Titan brand continues to be Indian consumers proud choice in this segment.

On account of the customs duty-related losses as well as the need to invest in the growth of various businesses, the profitability of Q2 was quite depressed.

"However, we are quite confident about the competitiveness of each of our businesses, and we remain optimistic about our performance for the rest of the financial year," the MD added.

Segment-wise, the jewellery business reported a 25.5% increase in total income to ₹10,763 crore. EBIT fell 22.7% YoY to ₹932 crore, while EBIT margin fell 540 basis points to 8.7%.

Watches & Wearables' total income rose 19.1% to ₹1,301 crore from ₹1,092 crore reported in the September 2023 quarter.