Despite gold prices surging over the quarter ended March 2024, late Rakesh Jhunjhunwala-backed multibagger Titan is poised to record double digit revenue growth in the quarter on an annual basis.
According to a poll of six brokerage estimates, the Tata group firm Titan’s revenue will grow by 11.4 percent year-on-year to Rs 11,054 crore.
The bottomline is likely to rise 10.5 percent year-on-year at Rs 811 crore, up from Rs 734 crore in the same quarter of FY23. The EBITDA margin might see an uptick of 40 basis points on an annual basis.
Growth in consumer discretionary major will be led by its jewellery segment, as the improved wedding segment performance drove performance.
Domestic brokerage Motilal Oswal noted that the jewellery segment will grow 18.5 percent, with a five-year revenue CAGR of 21.4 percent. Both buyer and same-store sales growth in the jewellery division achieved double-digit expansion.
However, the PAT will not grow as much as previous expected, per Emkay Global, largely due to higher interest expense on account of the Caratlane stake acquisition.
Also Read | Titan Company: Steady growth led by jewellery; strong long-term growth prospects
As per Q4 business update, the emerging business segment is anticipated to witness a significant 24 percent year-on-year growth, with Caratlane's sales expected to soar by 30 percent. Meanwhile, watch sales saw a 6 percent YoY rise, following a significant 21 percent growth in the previous quarter. The eyewear segment sales were under pressure, with a decline of 1 percent.
According to Centrum Broking, despite fierce competition in jewellery, Titan is expected to maintain operating margin given competitive edge in design and sourcing and higher ticket size with further improvement in studded ratio.
In its quarterly business update, Titan reported robust performance and expansion of its retail footprint. The addition of 86 stores further bolstered its retail network, which now stands at 3,035 stores.
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