Titan Company Ltd announced its July to September quarter results on Tuesday, November 5. The company recorded a 23 per cent fall in net profits to ₹ ₹704 crore in the second quarter of the financial year 2024-25, compared to ₹916 crore in the same quarter the previous year, according to the company's BSE filing.
Titan Company Ltd shares closed 0.23 per cent higher at ₹3,233.05 after Tuesday's market session, compared to ₹3,225.65 at the previous market close. The company released its second-quarter results after market operation hours on Tuesday.
The company's revenue from core operations rose 25.8 per cent to ₹13,473 crore in the July to September quarter, compared to ₹10,708 crore in the same period the previous year.
Titan's total expenses for the quarter increased 20 per cent to ₹13,709 crore, compared to ₹11,402 crore a year ago. The company incurred most of its expenses in the cost of materials and component consumed segment.
The cost of materials and components consumed increased by 26.6 per cent to ₹13,432 crore, compared year-on-year with ₹10,607 crore a year ago, as per the BSE filing.
The indicator for profitability, i.e., Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin fell 430 basis points (bps) to 9.9 per cent in the second quarter of the financial year 2024-25, compared to 14.2 per cent a year ago, according to Titan's investor presentation.
Even though the company's revenues from its Watches and Wearables, Jewellery, Eyecare, etc., segments fueled the overall 25.8 per cent surge in sales, the profits from the most lucrative business fell for the second quarter.
Titan's most lucrative business is the Jewellery segment revenues. The profits of the jewellery segment fell by 19.96 per cent in the July to September quarter to ₹974 crore, compared to ₹1,217 crore a year ago.
Titan is one of India's leading lifestyle companies, which has more than 8,000 employees and nearly 38,000 in the overall Titan ecosystem, 16 brands and over 2,000 retail stores, according to the company website.
