Titan Q2 FY25 Results: Net profit falls 23.1% YoY

Titan Company Ltd. reported its financial performance for the second quarter of fiscal year 2025 (Q2 FY25), showcasing a notable increase in revenue but a decline in net profit.

Key Financial Highlights for Q2 FY25:

• Revenue from Operations: The company’s revenue reached ₹13,473 crore, a 26% increase compared to ₹10,708 crore in Q2 FY24.
• Net Profit: Titan’s net profit for the quarter stood at ₹704 crore, down by 23.1% from ₹916 crore in the same quarter last year.

The decrease in net profit was attributed to higher operational costs, even as revenue saw a significant increase driven by strong demand in the jewellery and wearables segments. The results reflect Titan’s continued growth trajectory in revenue but underline the impact of rising expenses on profitability.

Segment-Wise Performance:

1. Jewellery:
   • Total income for the Jewellery segment grew by 26% YoY to ₹10,763 crore in Q2 FY25. The Indian jewellery business alone recorded a 25% growth over the same period.
   • The segment’s Earnings Before Interest and Tax (EBIT) reached ₹932 crore with an EBIT margin of 8.7% for the quarter. Excluding the impact of the custom duty reduction, the EBIT margin would have been higher at 11.4%.
   • Titan expanded its presence by opening 11 new Tanishq stores, 12 Mia stores, and 1 Zoya store during the quarter.
2. Watches & Wearables:
   • This segment posted a 19% YoY growth in total income, reaching ₹1,301 crore.
   • The domestic business recorded 19% growth, with the wearables segment posting a 13% decline due to reduced average selling prices.
   • EBIT for the segment was ₹194 crore, with a margin of 14.9%.
3. Eyecare:
   • The Eyecare segment recorded a revenue increase of 7% YoY, with total income reaching ₹201 crore in Q2 FY25.
   • EBIT for this segment came in at ₹24 crore, representing a margin of 11.9%.
4. Emerging Businesses:
   • Titan’s emerging businesses, including Indian Dress Wear (Taneira), Fragrances (SKINN), and Fashion Accessories (F&FA), achieved a total income of ₹106 crore, reflecting a 14% growth YoY.
   • Taneira expanded its retail footprint by adding four new stores, taking the total count to 81 stores across 41 cities.
   • The SKINN fragrance line grew by 19%, and Women’s Bags (IRTH & Fastrack) grew by 76% compared to Q2 FY24.
5. International Business Performance (Consolidated):
   • The international jewellery business saw a 62% income growth to ₹273 crore YoY, with Tanishq and Mia stores expanding in Abu Dhabi and other regions.
   • Other businesses in the international segment, primarily analog watches, grew by 54% YoY.
6. CaratLane Trading Private Limited:
   • CaratLane posted a 28% YoY revenue growth, reaching ₹829 crore. The company added 11 new stores, bringing the total to 286 stores across India.
7. Titan Engineering & Automation Limited:
   • The segment recorded a significant 56% growth in income, amounting to ₹196 crore, driven by strong demand in both Automation Solutions and Manufacturing Services divisions.