Titan Company Q1 Results: The Tata Group company's revenue from operations in the first quarter of current fiscal rose nine per cent to ₹11,263 crore
Nikita Prasad
Published2 Aug 2024, 05:40 PM IST
Titan Company Q1 Results: Net profit fell nearly one per cent in June quarter
Titan Company Q1 Results: Titan Company announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Friday, August 2, reporting a marginal drop of around one per cent in standalone net profit at ₹770 crore, compared to ₹770 crore in the corresponding period last year.
The Tata Group company's revenue from operations in the first quarter of the current fiscal rose nearly nine per cent to ₹11,263 crore, compared to ₹10,306 crore in the year-ago period. The drop in net profit was because higher gold prices hindered demand in its mainstay jewellery segment.
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Titan Company Q1 Results: Key Metrics
On the operational front, Titan Company's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter rose 9.8 per cent to ₹1,211 crore, compared to ₹1,103 crore in the year-ago period. Margin rose by 20 basis points (bps) to 10.1 per cent compared to 9.9 per cent in the same period last year.
The Tata group stock boasts investments from the insurance giant Life Insurance Corporation (LIC) of India and renowned Indian investor Rekha Jhunjhunwala, wife of late ace investor Rakesh Jhunjhunwala. LIC owns 1.78 percent of the total paid-up capital of the Tata group company. Jhunjhunwala holds a substantial 4,74,83,470 of Titan shares.
Gold prices have been on the rise since the last financial year, dampening demand for jewellery in India, the world's second-largest gold consumer, with many retailers offering significant discounts to attract customers. Fewer wedding days during the quarter, increasing competition from regional players, and heatwaves across the country have also stifled demand for gold jewellery.
Titan's jewellery business, which houses brands like Tanishq and CaratLane and accounts for 88 per cent of overall revenue, reported a 10 per cent rise in revenue. The company said domestic growth for jewellery was largely due to higher selling prices, whereas buyer growth was in the low single-digit percentage range. Titan's watches and wearables segment, which contributes eight per cent to the total revenue, reported a 12 per cent growth in revenue.