Tata Group company Titan delivered a better than expected performance in Q2 FY 2024 healthy revenue growth and operating profit margins.
The company gained 10 per cent and crossed upward revision in earnings estimates, posting strong September quarter (Q2 FY 2024) performance and a robust growth outlook. Domestic operations reported a growth of 20 per cent led by a double digit growth of buyers as well as average bill value per buyer during this period.
While store-level growth was higher at 27 per cent, reported growth was lower on account of discounting, accounting adjustments and lower sales to franchisees. Jewellery growth picked up pace in Q2 as the four-year revenue growth rate at 24.9 per cent was better than the 22.4 per cent recorded in Q4 FY 2023.
The company’s Q2 margin expanded by 300 basis points to 14.1 per cent largely aided by the higher margin studded segment. This was above the management’s guidance of 12-13 per cent.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished