Leading jewellery and watchmaker Titan on Tuesday reported a 23 per cent decline in its consolidated net profit to Rs 704 crore for the second quarter ended on September 2024.
The company posted a net profit of Rs 916 crore in the July-September quarter a year ago, according to a regulatory filing from Titan.
However, its sales were up 25.82 per cent to Rs 13,473 crore during the quarter under review. It was Rs 10,708 crore for the corresponding quarter.
Total expenses of Titan increased 20.23 per cent to Rs 13,709 crore in the June quarter.
Titan's total income in the September quarter rose 15.83 per cent to Rs 14,656 crore.
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During the quarter, Titan's jewellery business increased 15.25 per cent to Rs 12,771 crore. In the jewellery business, Titan's India business grew 25 per cent triggered by the "gold rush" after a reduction in customs duty (CD).
"The custom duty reduction saw a revival in consumer interest as gold prices cooled off temporarily. The ensuing gold rush lasted well into mid-September. Buyer growth was healthy and well accompanied by an increase in average selling prices, both exhibiting double-digit growths," it said.
During the quarter, in India, Tanishq opened 11 new stores, Mia added 12 and Zoya added 1 store respectively.
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Similarly, revenue from Watches & Wearables was up 19.41 per cent to Rs 1,304 crore.
"Analog segment recorded a strong 26 per cent revenue growth over Q2FY24 led by Titan brand clocking 32 per cent growth in the same period. Consumer preferences for premium brands were clearly visible with Helios channel (international brand sales) clocking a healthy retail growth of 43 per cent over Q2FY24," it said.
Its 'Wearables' segment saw a 13 per cent drop in its Revenue compared to Q2FY24 primarily due to a reduction in average selling prices.
The business added 34 stores in Q2 FY'25 comprising 18 new stores in Titan World, 14 in Helios and 2 in Fastrack respectively.
Its Eyecare segment revenue was up 6.87 per cent at Rs 202 crore.
"Frames and Lenses saw healthy growth in volumes. Sunglasses recorded a volume decline due to seasonality. International brand sales recorded a strong growth of 53 per cent over Q2FY24," said Titan adding the division added 3 new stores of Titan Eye+.
Revenue from other segments, which includes its emerging business as Fragrance, wallets, Indian Dress Wear (Taneria) etc was at Rs 301 crore, up 38.07 per cent in the September quarter.
The segment has emerging Businesses such as Taneria, Indian Dress Wear, Fragrances and Fashion Accessories.
"Taneira's sales grew 12 per cent compared to Q2FY24 mainly driven by growth from new stores. The brand opened 4 new stores during the quarter, taking the total store count to 81 stores covering 41 cities," it said.
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Titan is a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO).
Shares of the company on Tuesday settled at Rs 3,233.05 per scrip on BSE, up 0.23 per cent from the previous close.
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