Titan, a Tata Group's jewelry manufacturer, recorded an impressive 9.7% year-on-year (YoY) surge in its Q2 fiscal 2024 net profit to Rs. 916 crore ($123 million), surpassing market expectations. The company's revenue rose by 36.7% YoY to Rs. 12,529 crore ($1.68 billion), despite a slight dip in the operating profit margin to 11.3%.
The robust performance was driven by significant growth across all segments. The watches and wearables segment grew by 31.6% YoY to Rs. 1,092 crore ($147 million). Jewelry (excluding bullion sales) rose by 23.3% YoY to Rs. 9,265 crore ($1.24 billion), and eyecare increased by 13.2% YoY to Rs.189 crore ($25 million). Emerging divisions like fragrances and fashion accessories, as well as subsidiaries including Titan Engineering and Automation Ltd., and Titan Commodity Trading Ltd., also contributed to the growth.
In the same quarter, Titan expanded its retail presence by launching 68 new stores, including four new Taneira outlets, bringing the total store count to 2,613. This expansion followed the company's acquisition of an additional 27.2% stake in Caratlane for Rs 4,621 crore ($620 million), which led to a substantial income increase of 45.1% to Rs 650 crore ($87 million).
Looking back at Q3 of 2023, Titan's consolidated income and net profit had increased by 24% and 9.7% YoY respectively to Rs 10,837 crore ($1.45 billion) and Rs 916 crore ($123 million) from the previous year's Rs 8,742 crore ($1.17 billion) and Rs 835 crore ($112 million). The jewelry division's income rose to Rs 8,575 crore ($1.15 billion), while watches and wearables brought in Rs 1,092 crore ($147 million) and eyecare contributed Rs 188 crore ($25 million). EBITDA had grown by 15.8% to Rs 1,392 crore ($187 million).
Following the announcement of the Q2 fiscal 2024 results, Titan's shares appreciated by 2.28%, settling at Rs. 3,274.50 on the National Stock Exchange (NSE: TITAN).
InvestingPro Insights
Drawing from the latest InvestingPro data, Titan's market cap stands at an adjusted figure of 584.02M USD. The company's P/E ratio is at 4.98, indicating a strong earnings potential relative to its share price. Over the last twelve months (as of Q2 2024), Titan's revenue increased by a significant 28.39%, reaching 2463.96M USD.
Alongside these metrics, two InvestingPro Tips are particularly relevant. Titan has consistently increased its earnings per share, a trend clearly reflected in its recent Q2 fiscal 2024 results. Moreover, Titan is a prominent player in the Textiles, Apparel & Luxury Goods industry, with a strong retail presence that has been further bolstered by its recent store launches and acquisitions.
For further insights and a wealth of additional tips, consider exploring InvestingPro's services. With a total of 19 additional tips available for Titan, investors can gain a comprehensive understanding of the company's performance and potential.
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