Indian watch and jewellery maker Titan company has summed up the results of the second quarter of the 2024/2025 financial year, reporting a 26% increase in revenue.
Thus, it turned out to be 13,660 crore rupees ($ 1.6 billion), which is 26% higher than the figure for the same period last year (10,837 crore rupees or $ 1.28 billion). At the same time, overall profit fell by almost the same amount - to 948 crore rupees ($ 112.3 million), which is 24% less than in Q2FY23-24. The strong impact, as explained by the company, was due to a decrease in customs duties. Total quarterly revenue from jewellery stood at 10,763 crore rupees ($1.27 billion), up 26% from Q2 last year.
The cut in customs duties piqued consumer interest as gold prices temporarily eased. The ensuing gold rush continued till September, which is expected to be the month of September. The pick-up in consumer demand was accompanied by average selling prices, indicating double-digit growth.
Titan’s retail jewellery brands opened 24 new stores in India during the quarter: Tanishq - 11, Mia -12 and Zoya - 1.
Meanwhile, the international jewellery business recorded a 62% year-on-year growth in revenue to Rs 273 crore rupees ($32.2 million). Mia opened a new store in Abu Dhabi during the quarter. The international jewellery business is eyeing 18 stores, including 16 Tanishq stores and 2 Mia stores.
Watches generated revenue of 1,301 crore rupees (US$ 154 million), up 19% year-on-year. The analogue segment recorded a strong growth of 26% year-on-year over Q2FY24. The Titan brand in this segment recorded strong demand, especially for luxury watches. Other business lines, primarily consisting of casual watches, grew 54% year-on-year over Q2 revenue. During this period 34 new stores were opened.
Commenting on the quarterly results, the company’s Managing Director CK Venkataraman stated: "After a muted Ql, Q2 witnessed encouraging growth across key businesses. On account of the customs duty related losses, as well as the need to invest in growth of various businesses, the profitability of Q2 was quite depressed. However, we are quite confident about the competitiveness of each of our businesses and we remain optimistic about our performance for rest of the financial year."
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
