Titan Profit Dips 5.4% in Q1, Sales Up 12% | News

New Delhi, Aug 2 (PTI) Leading jewellery retailer and watchmaker Titan on Friday reported a 5.42 per cent decline in its consolidated net profit to Rs 715 crore for the quarter ended on June 2024.

The company posted a net profit of Rs 756 crore in the April-June quarter a year ago.

However, its sales were up 12.64 per cent to Rs 12,223 crore during the quarter under review. It was Rs 10,851 crore for the corresponding quarter, according to a regulatory filing from Titan.

Total expenses increased 12.75 per cent to Rs 12,413 crore in the June quarter.

Titan's total income in the June quarter rose 11.44 per cent to Rs 13,386 crore.

During the quarter, Titan's jewellery business revenue increased 10.4 per cent to Rs 11,808 crore.

The jewellery business witnessed 20 per cent retail growth in the first six weeks of the quarter that included Akshaya Tritiya, Titan said.

However "Q1 saw multiple forces coming together that impacted topline. A steep rally in gold rates (20% increase over Q1FY24), election-led restrictions in many markets, very few wedding dates and an unprecedented heat wave across the country weighed on overall consumer demand.

Tanishq expanded its international presence adding a new store in Muscat, Oman taking Titan's Jewellery international footprint to 17 stores.

"During the quarter, in India, Tanishq opened 11 new stores (net), Mia added 19 and Zoya added 3 stores respectively. Zoya opened its first store in the cities of Chennai and Pune," it added.

Similarly, revenue from Watches & Wearables was up 12 per cent to Rs 1,023 crore.

"Analog segment recorded a strong 17 per cent revenue growth over Q1FY24 led by Titan, Fast rack and Sonata brands," it said adding "While volumes in Wearables segment clocked healthy double-digit growths, the average selling prices continued to decline leading to a 6 per cent drop in Revenue compared to Q1FY24."

In the June quarter, 17 new stores were added across the network comprising five new stores in Titan World, five in Helios and seven in Fastrack respectively.

Its Eyecare segment revenue was up 3.44 per cent at Rs 210 crore.

Revenue from other segments, which include its emerging business as Fragrance, wallets, Indian Dress Wear (Taneria) etc was at Rs 277 crore, up twofold in the June quarter.

"Taneira's sales grew 4 per cent compared to Q1FY24 mainly driven by growth from new stores," it said, adding its Fragrances, Fashion Accessories (F&FA) business grew 1 per cent only.

Titan is a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO).

Shares of the company on Thursday dropped 0.15 per cent to settle at Rs 3463.15 per scrip on BSE.