Titan Company (TITAN) Q3 24/25 earnings summary

Executive summary

• Q3FY25 saw consolidated revenue growth of up to 25.5% year-over-year, reaching as high as ₹17,868 crore, driven by strong festive demand and robust growth in jewellery, watches, and international expansion.

• Jewellery led with over 26% revenue growth, gold jewellery and coins driving the mix, and international jewellery revenue up 64% year-over-year.

• Watches & Wearables and Eyecare segments posted double-digit growth, while Emerging Businesses grew 5% with retail and buyer growth in Taneira and new IRTH stores.

• Profitability was impacted by a one-time gold custom duty reduction, resulting in flat PBT and a slight decline in consolidated PAT to ₹1,047 crore.

• Management remains optimistic for FY25, focusing on scaling emerging businesses and continued investments across segments.

Financial highlights

• Q3FY25 consolidated total income reached up to ₹17,868 crore (up from ₹14,300 crore YoY), with PAT at ₹1,047 crore (down 0.6% YoY) and EBITDA margin at 10.2% (down 181 bps YoY).

• Standalone total income was ₹16,228 crore (up 24.2% YoY); standalone PAT was ₹990 crore (down 4.9% YoY).

• Jewellery same-store sales growth improved from 15% in Q2 to 22% in Q3, with EBIT margin at 9.4%-9.5% due to custom duty impact; adjusted EBIT margin at 11.2%.

• CaratLane reported revenue of ₹1,117 crore (up 27% YoY) and EBIT margin of 11.7%.

• Dividend payout for FY24 was ₹11/share, with a payout ratio of 29%.

Outlook and guidance

• Management expects to end FY25 with strong growth over FY24, prioritizing growth over margin expansion and maintaining investments in emerging businesses.

• EBIT margin guidance for jewellery remains at 11%-11.5% annualized, with a threshold not to go below 11% barring extreme situations.

• Volatility in gold prices and global economic factors may impact margins and demand in the near term, but long-term growth confidence remains strong.