StoxBox: Views on Titan Company Ltd Q4 FY24 Result

Titan Ltd. continued its healthy growth momentum in the jewellery business, led by new buyers. A soft demand environment driven by volatile and elevated gold rates amidst growing competitive intensity necessitated suitable investments in consumer promotions to drive aggressive growth and customer acquisitions. The wearable business is making good strides in contributing to the determined growth targets that the business has boarded. The eyecare business has rectified itself in this year of consolidation and has launched exciting new products for the fashion-conscious youth. The company will continue to pursue market share growth and is actively investing in capabilities across all its business segments. Looking forward, we remain constructive on the company‘s business prospects, with its single-minded focus on satisfying the ever-evolving needs of lifestyle consumers.

Titan Company Ltd. Q4FY24 Result First Cut – Jewellery segment continues to drive business performance

  • Revenue stood at Rs. 12,494 crores in Q4FY24 (up 20.6% YoY / down 11.8% QoQ), higher than street estimates of Rs. 10,567 crores, on the back of broad-based growth in its domestic jewellery business along with robust growth in its Watches & Wearables division and other business.
  • The company’s largest segment – Jewellery – recorded a revenue of Rs. 8,998 crores (up 19.0% YoY) in Q4FY24, aided by robust growth in its domestic operations. The Average selling prices (ASP) saw witnessed single-digit increase in the same period. New buyer contribution was ~54% of jewellery customers for the quarter. The business continued running attractive programs that helped maintain growth momentum amidst high gold prices. The EBIT stood at Rs. 1,089 crores, clocking a 12.1% margin in Q4FY24.
  • Watch and Wearables segment revenue rose 7.9% YoY to Rs. 940 crores, driven by premiumization and higher average price realizations. The premiumization journey continues to see good progress in Titan and Helios. The international brands analog sales saw growth of ~22% YoY in revenue, assisted by ~13% YoY growth in volumes. The EBIT stood at Rs. 80 crores, clocking a 9.5% margin in Q4FY24.
  • Eyecare segment recorded a flat annual revenue growth at Rs. 166 crores in Q4FY24. Within categories, Lenses grew ~4% YoY; Revenues from Frames and Sunglasses declined ~2% YoY and ~12% YoY. The EBIT stood at Rs. 8 crores, clocking a 4.8% margin in Q4FY24. Titan Eye+ opened one new store internationally in Dubai during the quarter.
  • The overall EBITDA registered a growth of 9.4% YoY / down 23.9% QoQ to Rs. 1,191 crores, surpassing market expectations of Rs. 1,094 crores. The EBITDA margin stood at 9.5% in the quarter compared to 10.5% in the corresponding quarter of last year.
  • Profit after Tax stood at Rs. 771 crores (up 4.8% YoY / down 26.8% QoQ) in Q4FY24, while PAT margin came in at 6.2% (down 93 bps YoY / down 126 bps QoQ).

Disclaimer: This press release serves for informational purposes only and does not constitute professional advice. Any reliance on the information provided is at the reader’s discretion.

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