New Delhi: Tata Group-owned Titan Company has reported a decline of 23.1 per cent in consolidated profit after tax (PAT) to Rs 704 crore in the quarter ended September 30, as against the consolidated PAT of Rs 916 crore in the same period of the previous fiscal, the company said in a regulatory filing on Tuesday.
Titan recorded a consolidated income of Rs 13,660 crore growing by 26 per cent in Q2 FY25 compared to Q2 FY24. The PBT was lower by 24 per cent at Rs 948 crore compared to Q2 FY24 mainly due to impact of custom duty reduction.
The company’s international jewellery business recorded an income growth of 62 per cent to Rs 273 crore compared to Q2 FY24. Other businesses comprising primarily of analog watches grew 54 per cent compared to their Q2 FY24 income.
During the quarter, Mia opened a new store in Abu Dhabi. The Jewellery international footprint stands at 18 stores consisting of 16 Tanishq stores and 2 Mia stores.
Titan’s subsidiary Caratlane’s total income grew 28 per cent to Rs 829 crore compared to Q2 FY24 (excluding bullion and digi-gold sales). Activations in July and August 2024 spurred growth in new customer acquisition by 21 per cent and growth in brand searches by 30 per cent over their respective Q2FY24 values. Its EBIT came in at Rs 58 crore for Q2 FY25 clocking a margin of 7.0 per cent.
Caratlane added 11 new stores (net) in the quarter taking the total store count to 286 stores spread across 119 cities pan-India.
Commenting on the quarterly performance, CK Venkataraman, managing director of the company stated, “After a muted Q1, Q2 witnessed encouraging growth across key businesses.”
On jewellery’s double-digit growth for the quarter, Venkataraman said, “Our portfolio approach in this business of straddling diverse customer needs through the brands of Tanishq, Mia, Zoya and Caratlane is working well. The buyer growth metrics were fairly strong and in good double-digits across gold and studded product categories. The quarter also witnessed analog watches growing more than 25 per cent over last year with commensurate uptick in volumes.”
On account of the customs duty related losses, as well as the need to invest in growth of various businesses, the profitability of Q2 was quite depressed. “However, we are quite confident about the competitiveness of each of our businesses and we remain optimistic about our performance for rest of the financial year,” he added.
