Titan Company Q3 FY24: Robust Revenue Growth Despite Margin Contraction

Titan Company Q3

February 1, 2023

New Delhi, India

Titan Company Q3 FY24 Results

In its third-quarter fiscal year 2024 (Q3 FY24) results, Titan Company showcased strong financial performance, with notable growth in both net profit and revenue. Despite a marginal contraction in EBITDA margin, the company remains optimistic about its market presence and is actively investing across various business segments.

Robust Revenue Growth:

Titan Company reported a substantial 20% year-on-year increase in revenue from operations, reaching ₹13,052 crore in Q3 FY24. This growth was fueled by encouraging consumer demand, especially during the festive quarter, contributing to a healthy double-digit growth of 24% over the strong base of Q3FY23.

Profitability Highlights:

The net profit for the quarter stood at ₹1,040 crore, marking a 9.4% growth from the same period last year. However, on the operational front, EBITDA increased by 9.5% to ₹1,457 crore, accompanied by a slight contraction in EBITDA margin from 12.2% to 11.2% year-on-year.

Segment-wise Performance:

Jewellery Segment: The jewellery segment demonstrated a robust performance, with total income growing by 23% to ₹11,709 crore. The India business within this segment recorded a growth of 21%, and the EBIT margin was a commendable 12.2%.

Watches & Wearables: Titan’s Watches & Wearables business showed a total income growth of 21%, reaching ₹982 crore. The domestic business within this segment grew by 23%, with an EBIT margin of 5.6%. Noteworthy was the significant growth in the Wearables category, with Fastrack and Titan Smart seeing remarkable increases of 66% and 57%, respectively.

EyeCare: The EyeCare segment experienced a 4% decline in total income to ₹167 crore, with an EBIT margin of 8.4%. Despite this, Titan Eye+ expanded its international footprint by opening two new stores in Dubai and Sharjah during the quarter.

Emerging Businesses: Emerging Businesses, comprising Indian Dress Wear (‘Taneira’) and Fragrances, Fashion Accessories (F&FA), exhibited a 26% growth in total income, reaching ₹112 crore. However, this segment recorded a loss of ₹20 crore for Q3 FY24.

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Subsidiaries’ Notable Performance:

Among Titan Company’s key subsidiaries, Caratlane reported a total income growth of 32% to ₹893 crore, with an EBIT margin of 9.2%. Titan Engineering & Automation also demonstrated significant growth, with a 61% increase in total income to ₹202 crore and an EBIT margin of 12.4%.

Future Outlook:

Managing Director CK Venkataraman highlighted the company’s commitment to market share growth and ongoing investments across all business segments. The management remains positive about the company’s future trajectory, leveraging its strong brand presence and consumer trust.

Stock Market Reaction:

Following the earnings report, Titan Company’s shares witnessed a 1.78% decline, closing at ₹3,631.60 apiece on the BSE.

In conclusion, while Titan Company celebrates substantial revenue growth, investors are advised to monitor operational efficiency and the performance of emerging businesses in subsequent quarters to gauge sustained profitability.

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