Titan Company’s share price will remain in focus on Monday after Elara Capital revised its outlook on the Tata Group firm, lowering its target price and trimming earnings estimates to factor in expected pressure on margins. While the brokerage remains positive on Titan’s long-term growth trajectory, it flagged near- to medium-term concerns around EBIT margins, prompting a recalibration of its financial projections.
Titan reported a strong standalone performance for the quarter, with revenue surging 77.6 per cent year-on-year to Rs 23,934 crore compared to Rs 13,477 crore in the same period last year. Net profit for the quarter rose 29.2 per cent YoY to Rs 1,124 crore, up from Rs 870 crore, while EBITDA increased 19.3 per cent to Rs 1,715 crore compared to Rs 1,438 crore in the year-ago period.
However, profitability margins came under pressure, with EBITDA margin declining to 7.2 per cent from 10.7 per cent, a contraction of 350 basis points on a yearly basis. The quarter also included an exceptional gain of Rs 49 crore
The company’s jewellery portfolio grew 50 per cent to Rs 18,195 crores (excl. Bullion and Digi-gold sales), “reflecting sustained consumer confidence despite an elevated gold price environment,” the company said in the filing. Menahwile, in watches category analog watches grew 15 per cent during the quarter on the back of continuing premiumisation trends. Further, during the quarter, Titan completed its 67 per cent acquisition of Damas Jewellery, “one of GCC region’s heritage and trusted jewellery brands marking a new chapter in Titan’s global growth ambitions,” it said.
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