Titan, a prominent Indian jeweler and watchmaker, announced its fourth-quarter financial results on Friday, reporting a net profit of Rs 786 crore ($94.2 million). While the profit marked a 7.1% increase compared to the same period last year, it fell slightly below analysts’ expectations of Rs 799 crore, according to data from the London Stock Exchange Group (LSEG).
The company’s jewelry segment, which includes renowned brands like Tanishq and CaratLane, experienced a robust 19% growth, fueled by a steady stream of buyers and double-digit percentage growth in same-store sales. Overall revenue also witnessed a healthy uptick, growing by 17%, as stated in the quarterly update released last month.
However, despite the positive performance, the jewelry segment fell short of the remarkable 23% growth reported in the corresponding period last year. One significant factor impacting Titan’s expenses was the surge in gold prices, which rose by 8.2% globally during the reporting quarter. This increase in gold prices contributed to a significant 18% jump in expenses, totaling Rs 1,043 crore for the quarter.
Consequently, Titan’s earnings before interest and tax (EBIT) margin contracted to 11.1% from 12% during the quarter, reflecting the impact of higher gold prices on the company’s operational costs.
While Titan’s financial results slightly missed analysts’ expectations, the company’s performance in the jewelry segment, along with its overall revenue growth, underscores its resilience in navigating challenges such as fluctuating gold prices. As one of India’s leading players in the jewelry and watchmaking industry, Titan continues to demonstrate its ability to attract customers and drive growth, even amid dynamic market conditions.