Bengaluru, India — Titan Company Limited, a prominent Indian lifestyle retail company, has reported a robust financial performance for the second quarter, ending September 30. The company announced a substantial 54% increase in net profit, reaching ₹1,722 crore, up from ₹1,120 crore in the same period last year.
Revenue for the quarter also saw significant growth, rising to ₹17,830 crore compared to ₹16,534 crore year-on-year. The total income for Q2 surged by 25% to ₹20,533 crore, demonstrating sustained healthy momentum across its diversified portfolio.
Strong Segmental Performance Drives Growth
Titan's various business segments contributed significantly to the impressive Q2 results:
- Jewellery Business: The jewellery portfolio, excluding bullion and Digi-gold sales, grew by 24% to ₹17,495 crore. This growth was boosted by successful initiatives like the 'Festival of Diamonds' and brand-level promotions, which propelled studded jewellery sales into the early thirties. The segment achieved an EBIT of ₹2,300 crore with a margin of 13.1%.
- Watches and Wearables: This segment recorded one of its strongest quarterly performances, with a 27% growth to ₹1,881 crore. The surge was attributed to ongoing premiumization trends and a strong consumer preference for analog timepieces.
- EyeCare: Titan's EyeCare division posted a robust 28% growth, reaching approximately ₹281 crore. This was driven by a focused multi-brand strategy, an upgraded store network, and a refined merchandise portfolio aimed at enhancing customer experience.
Strategic Initiatives and Future Outlook
In a move to strengthen its horological capabilities, Titan introduced 'Vetra,' its in-house movement, marking a significant milestone in its watchmaking journey and advancing its expertise in movement development and innovation.
Furthermore, the company's Board of Directors has approved a proposal to raise funds up to ₹2,500 crore through the issuance of rated, listed, redeemable, unsecured Non-Convertible Debentures (NCDs) on a private placement basis. A committee has been authorized to finalize the terms and allotment of these NCDs.
Following the earnings announcement after market hours, Titan Company's stock closed 1.72% higher at ₹4831.55, up from its previous close of ₹4750. The firm's market capitalization stood at ₹4.28 lakh crore.