Titan Company Ltd is confident of carrying forward its stellar July-September performance into the next quarter, with festival and wedding seasons driving demand.
“…second half of October has started pretty well for us our jewellery business and some of the other businesses. So, we are pretty hopeful that we will have a good Quarter 3, Even on the solid base of last year Quarter 3, we should be able to deliver some healthy group members,” CFO Ashok Sonthalia told CNBC-TV18 on November 6.
The jeweller and watchmaker on November 3 reported a consolidated net profit of Rs 916 crore for the September quarter, up 9.7 percent from the year-ago period. Sequentially, the profit was up 21.6 percent.
Consolidated revenue came in at Rs 12,529 crore, rising 36.73 percent, attributed in part to the sale of gold ingots. The watch business crossed the Rs 1,000-crore mark for the first time. Sequentially, the revenue increased 5.31 percent from Rs 11,897 crore in the previous quarter.
For the second half of the year, Titan aims for mid to high-teen growth in the jewellery business, with focus on sustainable and consistent margins, he said.
Sonthalia acknowledged that the diamond market was evolving, with lab-grown stones gaining traction in some markets, particularly the US. The company was monitoring these developments closely.
Read more: Titan Company Q2: Net profit rises 9.7% to Rs 916 crore, revenue up 36.7%, beats estimates
The watches business was performing well, with wearables gaining prominence. Titan was focusing on market share and delivering consistent margins in the competitive industry, the CFO said.
““We are also taking some concrete step on premiumisation and further premium offerings coming from House of Titans. So we are very, very positive about the overall watches and wearables segment.” said Sonthalia.
Read more: Titan Company: Strong Q2 FY24; shining show to go on
In its earnings statement, the company also provided an update on its smaller businesses. The ethnic wear segment under Tanishq's Mia brand was shaping up well, and the eyecare segment was profitable, with plans to accelerate its growth.
Subsidiary CaratLane saw a 45-46 percent growth in the first half of the year, and the company expected further expansion in profitability and growth over the coming years, Sonthalia said.
Titan has also successfully completed a non-convertible debenture issuance of Rs 2,500 arore at 7.74 percent interest, reducing its working capital borrowing, he said.
At 2.47 pm, the stock was trading at Rs 3,263 on the National Stock Exchange, down 0.35 percent from the previous day.
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