Titan Reports 25% Revenue Growth in Q3 FY2024-25; Customs Duty Change on Gold Impacts Profitability
Titan Company Limited (“Titan”) today announced its financial results for the quarter and nine-month period ended 31st December 2024.
Quarterly Financial Highlights:
Note: Total income excludes bullion sales in all periods. Numbers and growth percentages are rounded to the nearest integers.
Titan (consolidated) recorded a quarterly income of ₹17,723 crores, reflecting a 25.5% growth over Q3 FY24. However, PBT remained flat at ₹1,396 crores compared to Q3 FY24, primarily due to the impact of the customs duty reduction on gold
Business Performance (Standalone):
Jewellery:
The total income for the quarter grew by 26% over Q3 FY24, reaching ₹14,697 crores. The India business saw a 25% growth during this period. The festive season boosted consumer sentiment, leading to a 28% rise in secondary sales, driven by higher gold prices, a 29% increase in wedding-related purchases, and a 22% same-store sales growth compared to Q3 FY24.
Gold jewellery and coins remained popular, achieving a 27% growth over the same period.EBIT stood at ₹1,398 crores with a margin of 9.5%. Adjusting for the ₹253 crores customs duty impact, EBIT for Q3 FY25 was ₹1,651 crores, achieving a margin of 11.2%. During the quarter, Tanishq opened 11 new stores (net), while Mia added 13 stores in the domestic market.
Watches & Wearables:
The Watches & Wearables segment reported a total income of ₹1,128 crores, marking a 15% increase over Q3 FY24. The domestic business grew 14% in the same period. The analog watch segment grew 20%, led by the Titan brand, which recorded an 18% growth. International watch sales saw a 30% increase, reflecting consumer preference for premium brands.
However, the wearables segment declined by 20%, with average selling prices and volumes falling by 8% and 7%, respectively, compared to Q3 FY24.
While this report incorporates a greater number of collaborators than the initial one in 2022 did and presents a more informed analysis of the industry, the data regarding the industry is still inconsistent, often incomparable, and far from robust.
EyeCare:
“This second deep-dive into the global supply of emerald, ruby, and sapphire makes solid strides forward, but continues to serve as a reminder of how far the coloured gemstone industry still has to go to reach the levels of transparency that end consumers deserve. Gemfields has pioneered approaches such as this research paper series and the G-Factor for Natural Resources, to facilitate a clearer understanding of the coloured gemstone sector, so that the industry can increasingly serve as a force for good,” explains Sean Gilbertson, CEO of Gemfields.
Emerging Businesses:
The Emerging Businesses segment, which includes Indian Dress Wear (Taneira), Fragrances, and Fashion Accessories (F&FA), recorded total income of ₹118 crores, reflecting a 5% growth over Q3 FY24.
- Taneira’s sales remained flat for the quarter.
- Fragrances recorded a 27% growth, led by 23% growth in SKINN.
- Fashion Accessories (excluding discontinued belts & wallets) saw a 25% growth, driven by women’s bags (IRTH & Fastrack).
The segment posted a ₹32 crore loss for the quarter. During this period, IRTH opened its first store in Mumbai, followed by another in Chennai. Taneira opened one new store in Salem, Tamil Nadu, bringing its total store count to 82 across 42 cities.
International Business Performance (Consolidated):
The International Jewellery business grew 64% to ₹569 crores, primarily driven by growth in North America and new store expansions. Other businesses, mainly analog watches, grew 86% over Q3 FY24.
During the quarter, two new Tanishq stores were opened, one in Dubai and one in Seattle. The Tanishq international footprint now stands at 20 stores, including 18 Tanishq stores and 2 Mia stores. Titan Eye now has 4 international stores.
Key Subsidiaries:
CaratLane Trading Private Limited:
Total income grew 27% to ₹1,117 crores compared to Q3 FY24 (excluding bullion and digi-gold sales). Activations and promotions during the festive season led to a 22% increase in brand searches.
EBIT for Q3 FY25 stood at ₹131 crores, with a 11.7% margin. CaratLane added 19 new stores (net) in India, bringing the total to 305 stores across 128 cities. The brand also opened its first international store in New Jersey, USA.
Titan Engineering & Automation Limited:
The business recorded a total income of ₹193 crores, reflecting a 4% decline compared to Q3 FY24.
- Automation Solutions revenue declined by 14%
- Manufacturing Services revenue grew by 12%
EBIT for the quarter stood at ₹33 crores, with a 17% margin.
Management Commentary:
Mr. C.K. Venkataraman, Managing Director of Titan, commented:
“The festive quarter firmly established our FY25 growth trajectory after a muted Q1 and a healthy Q2. Jewellery saw its strongest quarter of the fiscal year, growing well over 25% at a retail level. Consumers continued to prefer gold, both as jewellery and as a store of value. Our analog watches saw 20% retail growth, reaffirming Titan’s strong customer proposition. EyeCare’s return to double-digit growth was also encouraging.
The customs duty impact on gold inventories has now been fully realized, affecting profitability this quarter. However, we remain committed to investing in the growth of all businesses, especially emerging ones, to help them scale faster. We are optimistic about ending FY25 with strong growth over FY24.”
Conference Call:
The earnings conference call is scheduled for 5th February 2025 at 8:15 AM. Call details are available at:
Titan Investor Relations – Quarterly Results
About Titan:
Titan Company Limited (“Titan”), a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO), commenced operations in 1987 as Titan Watches Limited. In 1994, Titan diversified into jewellery (Tanishq) and later into EyeCare (Titan Eye+).