Titan Q2 Results Live Updates: Revenue growth to be driven by Jewellery segment, margins may moderate

Titan Q2 Results Live: Titan shares trade higher ahead of Q2 results

Titan Q2 Results Live: Expect strong growth in H2FY24 led by soft gold prices, marriage season

Prabhudas Lilladher remains positive on Titan Company as a play on consumer shift towards organized players in jewellery, eyecare, watches and emerging segments. Titan continues to consolidate in the Jewellery segment and is creating next levers of growth in Eyewear (Titan Eye+), Jewellery (Caratlane and Mia), Dress material (Taneira) and Wearables (Titan and Fastrack). 

We expect strong growth in H2FY24 led by soft gold prices and upcoming marriage season. We expect premium valuations to sustain given strong growth outlook and emerging lifestyle play, said the brokerage. It estimates 17% EPS CAGR over FY23-26E.

Titan Q2 Results Live: Jewellery demand remained sluggish in Q2

Jewellery demand in the industry was tepid during Q2FY24 led by delay in marriage season in both north and south India, late Diwali and ‘Adhikmas’ as consumers delayed their jewellery shopping. Gold purchase scheme continues to perform well with robust growth in enrolments.  

Gold prices have corrected by 8% from the peak of ₹62,000 per 10 grams which has boosted demand in the last fortnight of the quarter. Analysts at brokerage firm Prabhudas Lilladher believe decline in gold prices and festival and marriage demand will provide a significant boost to demand in 3Q24.

Titan Q2 Results Live: Titan shares up over 25% YTD

Titan share price has gained only over 2% in one month. However, the stock is up more than 12% in the past three months. Titan shares have rallied over 25% year-to-date (YTD), while they have added 18% in one year period. In the last three years, Titan share price has jumped more than 171%.

Titan Q2 Results Live: Double digit growth across segments likely

Titan Company is expected to report double digit growth across segments despite elevated gold prices and ‘Adhik mas’ driven by robust demand in the jewelry segment. New growth engines like Wearables, Taneira and Cartlane to outpace company growth. Margins will be impacted by higher base margins due to studded inventory gains and higher consumer activations and promotions, brokerage firm Prabhudas Lilladher said.

Titan Q2 Results Live: A look at Titan’s Q1 performance

Titan Company’s net profit declined 2% to ₹777 crore in the April-June quarter of fiscal 2023-24 (Q1FY24), compared to ₹793 crore in the corresponding period last year. The jewellery and accessories maker’s revenue from operations during the first quarter of the current fiscal stood at ₹11,145 crore, compared to ₹8,961 crore in the year-ago period. 

India business growth was 20% during the quarter. The watches and wearables segment of Titan Company recorded a total income of ₹890 crore, up 13% compared to Q1FY23 backed by a robust growth of 81% in the Wearables segment. 

The total income of CaratLane Private Limited grew 32% to ₹640 crore compared to the corresponding quarter previous year.

Titan Q2 Results Live: Brand-building investments, consumer offers uptick to dent margins YoY

Titan Company is expected to see about 60 basis point moderation in margins on an annual basis due to an increase in brand-building investments and uptick in consumer offers, Anushi Vakharia, Research Analyst, StoxBox said. However she expects margins to expand sequentially, with the company’s focus on promoting its studded business which has a higher ticket share.

Titan Q2 Results Live: EBITDA may grow by 3.9%; margins likely to fall 181 bps YoY

On the back of rising gold prices and increased discounting (gold exchange), Centrum Broking expects Titan Company’s EBITDA in the quarter ended September 2023 to grow by 3.9% YoY to ₹1,295.2 crore, and EBITDA margin to settle at 11.8%, down 181 bps YoY. 

It expects Titan Company’s revenue in Q2FY24 to rise 19.8% to ₹10,976 crore and adjusted net profit to grow by 6.7% YoY to ₹890.6 crore.

Titan Q2 Results Live: Expect Titan to outperform peers: Centrum Broking

Centrum Broking expects Titan Company to report revenue growth of 19.8% whereas Caratlane to grow at 45.0% YoY. It expects growth to be driven by jewelry growth at 19% led by new buyer growth along with higher ticket size, Watches & Wearables to grow by 32% driven by strong growth in international portfolio and wearables, Eye care revenues to grow ~12%. 

We expect similar to Q1, the company would continue to invest in gold exchange programs and consumer offers also helped maintain this momentum to the jewelry segment. Watches & Wearables segment growth to be driven by e-com, LFS and Helios chain addition. Growth in Eye care to be driven by the trade channel though Titan Eye+ has improved contribution to sales in our view, Centrum Broking said. 

Including Caratlane, the company continues to add more offline stores added in Q2FY24. It believes sales momentum would continue and expects Titan to outperform peers. 

Titan Q2 Results Live: Delayed festive season may impact inventory stocking

For Titan Company, Nuvama Institutional Equities builds in a 16% growth in Jewellery segment (ex bullion). Titan highlighted that it is not expecting any adverse impact from Adhik Mass. That said, delayed festive season could impact inventory stocking and remains a monitorbale. 

“We build in 10% YoY growth in the Watches & Wearables/Eyewear segment. In Q2FY23, Titan had ~200 bps margin benefit in the Jewellery segment, adjusting for that we build in an EBIT Margin of 13.0% in Q2FY24 (Q2FY23: 15.3%). Overall our standalone revenues come to ₹95.2 billion, up 9% YoY with EBITDA Margins at 12.5% (Q2FY23: 14.1%) and EBITDA at ₹11.9 billion, down 3% YoY,” said Nuvama Institutional Equities.

Titan Q2 Results Live: Jewellery EBIT margin likely to drop to 12.5%: Kotak Equities

Kotak Institutional Equities expects Titan Company to see standalone jewelry EBIT margin of 12.5% (versus reported EBIT margin of 15.3% and adjusted EBIT margin of 13.3% (excluding one-off gains) in 2QFY23). 

We expect a YoY decline in jewelry EBIT margin (despite cut in franchise commissions) on account of rationalization of gold rate mark-up, aggressive exchange offers, slightly higher-than-usual studded activation schemes and strong growth in the South (low-margin market), said the brokerage firm.

It notes that Tanishq has not reduced diamond prices so far even as market prices have come off by 10-15%. 

Given this, we would not be surprised with a rise in promotions, especially in the case of studded in the near term. Titan has guided jewelry EBIT margin of 12-13% in FY2024E. We estimate 12.5% EBIT margin for watches, and 15% EBIT margin for eyewear in 2QFY24, Kotak Institutional Equities added.

Titan Q2 Results Live: Standalone jewelry sales growth seen at 27% YoY: Kotak Equities

Kotak Institutional Equities models 27% YoY growth in standalone jewelry sales (excluding sale of gold bullion) partly aided shift in inauspicious period (‘Shradh’) to 3Q this year versus 2Q last year (shift in ‘Shradh’ should have aided 2QFY24E growth by ~700 bps) and exports to overseas subsidiaries. 

Some softness in gold prices since June and stability thereafter for the past three months helped domestic demand and 15% YoY growth in watches and 25% YoY growth in eyewear (aided by store growth) segment, the brokerage said.

Titan Q2 Results Live: Watches growth seen at 15%, eyewear biz to grow 25% YoY

Watches segment may see 15% growth, while growth in the eyewear segment is estimated to be at 25% YoY. EBIT margin for watches is expected to be 2.5%, and 15% for eyewear segment in Q2FY24.

Watches & Wearables segment growth to be driven by e-com, LFS and Helios chain addition. Growth in Eye care to be driven by the trade channel though Titan Eye+ has improved contribution to sales in our view. Including Caratlane, the company continues to add more offline stores added in Q2FY24, analysts said.

Titan Q2 Results Live: Jewellery segment likely to grow 27% YoY

Titan Company’s standalone jewelry sales are expected to see 27% YoY growth, partly aided by a shift in the inauspicious Shradh period to Q3 this year and exports to overseas subsidiaries. 

EBIT margin of the jewellery segment is estimated to drop to 12.5% on account of rationalization of gold rate mark-up, aggressive exchange offers, slightly higher-than-usual studded activation schemes and strong growth in South.

Titan Q2 Results Live: Revenue growth seen at 18.8% YoY

Tata Company is expected to see an 18.8% growth in its September quarter revenue at ₹10,369.2 crore as compared to ₹8,730 crore in the year-ago period. The strong performance is estimated to be driven by robust growth momentum in the Jewellery segment. Watches and wearables are also expected to be strong growth drivers. 

Titan Q2 Results Live: Expect muted net profit growth of 1.9% YoY

Titan Company is expected to report a net profit of ₹873.6 crore in the quarter ended September 2023, registering a muted growth of 1.9% from ₹857 crore in the same quarter last year.

Titan Q2 Results Live: Titan share price rises almost 2% ahead of Q2 results

Titan share price gained almost 2% in early trade on BSE on Friday, November 3 ahead of the company’s September quarter earnings. The company’s board is to meet on Friday to consider and approve the unaudited financial results for the second quarter and half year ended September 30, 2023.

Titan share price opened at ₹3,214 against the previous close of ₹3,201.30 and rose about 1.7% to the level of ₹3,256 within the first 30 minutes of trade. The stock traded 1.58% higher at ₹3,251.75 on BSE. Read here

Titan Q2 Results Live: Jewelry segment to grow by 19%: Motilal Oswal

Motilal Oswal Financial Services expects Titan’s revenue growth of 16.9% YoY on account of healthy wedding and high value studded purchase. Jewelry segment to grow by ~19%, with a four-year/fiveyear revenue CAGR of 27%/21%. GP margin is expected to decline with rise in the gold prices. Outlook on international business expansion is a key monitorable, the brokerage said.

Titan Q2 Results Live: Jewellery segment is likely to drive revenue growth, margins may see some moderation

Titan Company is expected to report strong September quarter performance largely driven robust growth momentum in the Jewellery segment. Watches and wearables are also expected to be strong growth drivers while other Emerging businesses are shaping well and EyeCare sees a double-digit growth helped by international brands. Read full report here

Titan Q2 Results Live: Zomato, Titan, IndiGo among 187 companies to announce Q2 results today

A slew of firms have released their Q2 results this week, and today about 187 companies will be releasing their earnings for the September quarter. Zomato. Titan, InterGlobe Aviation, MRF, IDFC Ltd, Crompton Greaves Consumer Electricals, JM Financial, and UCO Bank are among the handful of major companies releasing their earnings for the quarter and half year ended September 2023. Read here

Titan Q2 Results Live: Tata Group company Titan to announce Q2 results today

Titan Company, the Tata Group jewellery and watcher maker, will announce its financial results today for the second quarter of FY24.