Titan Q2 Profit Up 10%, Sales Jump 25% - Jewellery Sales Drive Growth

New Delhi, Nov 3 (PTI) Jewellery and watchmaker Titan Company Ltd on Friday reported an increase of 9.7 per cent in its consolidated net profit at Rs 916 crore in September 2023 quarter, led by sales of jewellery in the domestic market.

The company posted a net profit of Rs 835 crore in the July-September period a year ago, the Tata Group-managed firm said in a regulatory filing.

Titan's sales increased 25 per cent to Rs 10,708 crore during the quarter under review as against Rs 8,567 crore in the corresponding quarter a year ago.

Its total expenses in the September quarter stood at Rs 11,402 crore, up 41.07 per cent year-on-year.

During the period, the total income of Titan rose 37.17 per cent to Rs 12,653 crore.

In the September quarter, Titan's jewellery segment clocked a revenue of Rs 11,081 crore, up 38.56 per cent as compared to Rs 7,997 crore in the year-ago period.

In the jewellery segment, Titan's "total income from India operations recorded a strong growth of 21 per cent YoY to Rs 8,438 crore; revenue from exports declined by 33 per cent YoY due to lower inventory transfers to overseas subsidiaries."

During the quarter and six months ended September 30, 2023, the group sold gold ingots aggregating Rs 1,816 crore and Rs 2,757 crore, respectively.

Besides, in the September quarter, as part of its international expansion, Tanishq entered Qatar, opening two new stores in DFC Mall and Lulu Hypermarket in Doha, it added.

Revenue from the watches and wearables category grew by 31.56 per cent to Rs 1,092 crore in the reporting quarter as against Rs 830 crore in the second quarter of FY23.

Titan reported "Rs 1,000 crore-plus of quarterly revenues for the first time" from its 'watches and wearables' segment.

The company has a revenue of Rs 870 crore from analogue watches, growing 22 per cent YoY. While in the wearables, Titan "continued its fast-paced growth trajectory" as its revenue crossed Rs 175 crore, clocking a 131 per cent growth.

The division added 10 new stores in Titan World, five in Helios and five stores in Fastrack during the quarter, it said.

Eye care segment revenue increased 13.17 per cent to Rs 189 crore as compared to Rs 167 crore in Q2 FY23.

In the segment, international brands clocked a faster growth of 14 per cent whereas the in-house brand's growth was slower. Now international brands contribute 25 per cent share in the portfolio, the company added.

"Amongst categories, revenues from sunglasses grew 47 per cent YoY, lenses grew 9 per cent YoY whereas frames growth was nearly flat YoY," it said.

Revenue from other segments, which include its emerging business such as fragrance, wallets, Indian clothing brand Taneria etc., rose 11.22 per cent to Rs 218 crore in the July-September period.

"Taneira's Q2FY24 sales grew by 64 per cent YoY. The brand opened 4 new stores during the quarter, taking the total store count to 51 stores covering 25 cities," it said.

Meanwhile, the debenture committee of Titan in a meeting held on Friday approved the allotment of 2.50 lakh NCDs, with a face value of one lakh, having an aggregate value of Rs 2,500 crore in two series with maturity periods of 18 months 2 days, and 24 months, respectively, on private placement basis.

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

Shares of Titan Company Ltd on Friday ended 2.23 per cent lower at Rs 3,272.55 apiece on the BSE.