Titan Q3 Results: Revenue Surges 25% but Profit Marginally Declines to Rs 1,047 Crore
Impact of Customs Duty Changes on Profitability
Consumer goods giant Titan has reported its financial results for the third quarter, showcasing a strong revenue growth of **25% year-on-year (YoY) to Rs 17,723 crore**. However, consolidated net profit saw a slight dip of **-0.6%**, settling at Rs 1,047 crore.
The company's profit before tax remained relatively flat at Rs 1,396 crore. Titan attributed this performance primarily to the impact of reduced customs duty on gold. The company stated that it has fully realized the custom-duty-related losses on inventory held at the time of the duty change, impacting overall profitability during the quarter.
Management Outlook and Strategic Investments
CK Venkataraman, MD of Titan, expressed optimism about the company's future prospects. "We are committed to investing in the growths of all our businesses and specifically the emerging ones to help them scale faster. We remain optimistic on our performance and hope to end the fiscal year with good growth over FY24," he stated.
EBIT and Margin Analysis
Consolidated EBIT (Earnings Before Interest and Taxes) for the third quarter increased by **5% YoY to Rs 1,627 crore**. Despite this growth, EBIT margins contracted by **177 basis points to 9.2%**, reflecting the impact of the aforementioned customs duty changes.
Jewellery Business Performance
The jewellery business, a key segment for Titan, recorded a robust revenue growth of **26% to Rs 14,697 crore**. The India jewellery business specifically saw a **25% increase**. The festive season contributed significantly to this performance, with secondary sales growing by an impressive **28%**, fueled by higher gold prices and strong wedding-related purchases, which increased by **29%**. Same-store sales growth also remained healthy at **22%**.
In conclusion, while Titan's Q3 results show strong revenue growth, profitability was impacted by external factors, particularly changes in customs duty on gold. The company remains optimistic about future growth and continues to invest in its various business segments.
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