Now Reading: Titan sees jewellery demand rebound, profit jumps 63%
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Titan sees jewellery demand rebound, profit jumps 63%
Titan reported a 63% jump in net profit to Rs 1,777 crore for the June quarter, beating estimates, as jewellery demand recovered after a brief slowdown. Revenue rose 20% to Rs 21,356…
The Story in Brief
Titan reported a 63% jump in net profit to Rs 1,777 crore for the June quarter, beating estimates, as jewellery demand recovered after a brief slowdown. Revenue rose 20% to Rs 21,356 crore, slightly below the Bloomberg consensus estimate. Managing director Ajoy Chawla said high gold prices temporarily slowed plain jewellery purchases in late July, but demand picked up again within days.
The jewellery business, which includes Tanishq, Mia and Zoya, grew 38%. A three-week lull in May caused by a customs duty hike and the inauspicious Adhik Maas period was mostly made up in June. Titan received a temporary Rs 407 crore benefit from the customs duty increase and 75-80 basis points from domestic-international gold price differences, both expected to reverse in coming quarters. The watches business revenue was Rs 1,543 crore, while EyeCare grew 21% to Rs 289 crore.
The Indian Opinion
Headlines calling this a 'defies high gold prices' story miss the point. Titan's 5% buyer growth and reliance on gold exchange, over 50% of business, show consumers are adapting, not ignoring costs. The Rs 407 crore customs-duty windfall and price-arbitrage gains flattered the margin. The real test: can Titan sustain 11% jewellery margins once those temporary benefits reverse in 2-3 quarters? The war-hit Damas subsidiary remains a drag. Watch studded jewellery's share of sales as the true gauge of premiumisation.
Source: livemint.com
This story was synthesised by AI from the source linked above.
