Mumbai: Titan Company reported a 23.1% year-on-year decline in net profit for Q2 FY25, attributed to the impact of a customs duty reduction.
Revenue from operations, however, rose 25.8% to Rs 13,473 crore compared to the same period last year, while net profit reached Rs 704 crore. Sequentially, net profit fell 1.5%, though revenue increased by 10.2%.
The company’s profit before interest, depreciation, and tax dropped 11.5% year-on-year to Rs 1,359 crore in the quarter ending September.
On a standalone basis, Titan's total revenue from its jewellery business rose 26% to Rs 10,763 crore, while its India business grew by 25%, according to its earnings release.
The company noted that the reduction in customs duty temporarily lowered gold prices, reviving consumer interest and spurring a "gold rush" into mid-September.
This boost in demand led to strong growth in buyer numbers and average selling prices, both achieving double-digit increases.
In the quarter, Tanishq opened 11 new stores, Mia added 12, and Zoya expanded with 1 new location.
Titan’s watches and wearables segment saw a 19% increase in total income, reaching Rs 1,301 crore, driven by a similar growth rate in the domestic market.
Titan Co’s managing director, CK Venkatraman, commented that Q2 experienced promising growth after a subdued Q1, with jewellery achieving robust double-digit gains.
He highlighted that the company’s brand portfolio approach, which includes Tanishq, Mia, Zoya, and Caratlane, continues to meet varied customer needs effectively.
Venkatraman also pointed out a strong, double-digit growth in buyer numbers across gold and studded jewellery categories, with analogue watches increasing by over 25% year-on-year in both revenue and volume.
He acknowledged that customs duty adjustments and investments in growth initiatives weighed on Q2 profitability.
Despite these challenges, Venkatraman expressed confidence in the competitiveness of Titan’s businesses and optimism for the company's outlook in the remainder of the financial year.
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