Titan Q2 preview: Consolidated revenue expected at Rs 14,430 crore, PAT seen rising to Rs 1,080 cr
Titan Company, part of the Tata Group, will release its Q2FY25 results today, as market expectations are high for strong year-on-year growth figures across its segments.
According to Zee Business estimates, Titan is expected to report a consolidated revenue of Rs 14,430 crore, marking a 15 percent increase from Rs 12,530 crore in Q2FY24.
Additionally, EBITDA is expected to increase by 16.4 percent to Rs 1,640 crore, improving margins marginally to 11.4% from 11.3%. PAT is expected to grow by 18.4 percent year-on-year to Rs 1,080 crore.
Divisional operations and store expansion
Titan’s standalone performance for Q2FY25 is estimated to show strong growth of 25 percent, with jewelry leading at 26 percent, followed by watches at 19 percent, eyewear at 6 percent, and emerging businesses at 14 percent. The CaratLane division, in particular, is expected to grow by 28 percent year-over-year. In addition, Titan expanded its retail footprint, adding a total of 75 stores, bringing the company’s total to 3,171 stores. The recent cut in excise duty has boosted short-term demand, boosting sales of Titan’s core components.
Impact of One-Time Asset Losses and Extraordinary Expenses
Analysts, including Kotak Institutional Equities, foresee a one-time asset loss of around Rs 325 crore due to the impact of the custom duty cut. This is part of a wider overhaul of the property, which may include a special charge of around Rs 3,250 crore. In Q2FY25, private jewelery sales are expected to grow by around 21 per cent, excluding the billion. However, the jewelry EBIT margin may face an 80 basis point decline year-on-year, influenced by a three percent decline in the share of full jewelry, and continued price adjustments in the gold and diamond segments.
Since the start of trading on November 5, Titan shares have shown small gains, but the stock remains down more than 11 percent year-on-year, indicating continued pressures despite strong operational performance. Investors will be watching closely to see how the earnings announcement matches market expectations.
