Rekha Jhunjhunwala's portfolio firm Titan Company is treading cautiously, as volatile gold prices, tariff hikes and geopolitical uncertainties dent demand. Even though the jewellery major delivered a strong performance in the quarter ended March, it signaled that future price increases could be on the cards if U.S. tariffs are implemented. However, the firm retained its margin guidance.
Titan Company might take price hikes if U.S. President Donald Trump's tariffs are implemented. "We are waiting, we will watch how the whole situation unfolds and then basis that, depending on what the competition also does, it's quite likely that if tariffs go up then we will take price increases," said the firm's management, in a post-earnings call with analysts and investors.
Furthermore, Titan retained its EBITDA margin guidance between the 11-11.5 percent band, despite posting a higher margin for the quarter ended March. Given the volatility in gold prices amid trade-related concerns and geopolitical tensions, the firm's management shared that they would not guide for an upside.
"I think that is stage, we are not guiding you for any upside considering the uncertainty of gold prices and many, many uncertainties for future. 11 to 11.5 percent seems to be more reasonable," said Ashok Sonthalia, Chief Financial Officer.
The Jewellery segment CEO, Ajoy Chawla, added, despite the soaring gold prices, Titan has a healthy outlook for the space. "We are certainly planning and targeting and also hoping for a healthy double-digit growth, either driven by ticket size or by buyer or by both." Based on this, the earnings growth is expected to be in healthy double-digits, between 15 to 20 percent.
"Our priority to continue to grow topline and acquire customers is the highest. Sometimes we may be willing to invest some of that margin into growth, that has been the outlook and that has also been the guidance from our board," added Chawla. "As a result, margins may sometimes come down if the competitive situation or the consumer sentiment is adverse."
Also Read | Rally in gold prices dents jewellery demand, any correction 'welcome': Titan
Titan Company reported net profit of Rs 870 crore for the quarter ended March 31, 2025, an increase of 11 percent from Rs 786 crore in the year-ago period.
The Tata-group company's consolidated revenue rose 20 per cent to Rs 13,477 crore in the March quarter as against Rs 11,257 crore in Q4FY24, boosted by strong sales in the jewellery and watches segments.
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