Titan Q4 results tomorrow: Net profit likely to rise 8% YoY; jewellery segment to aid revenue growth

The late Rakesh Jhunjhunwala-backed Titan Company is expected to report revenue of ₹11,250 in Q4FY24, registering a growth of 16% from ₹9,704 in the year-ago period, according to average estimates of domestic brokerages including Prabhudas Lilladher and Antique Stock Broking.

Titan Q4 net profit is estimated to rise 8.2% to ₹794 crore from ₹734 crore, year-on-year (YoY). Analysts believe there could be demand moderation in Titan’s jewelry segment in Q4FY24.

Titan is expected to report high double digit value growth despite elevated gold prices driven by a strong wedding season. New growth engines like Taneira and Caratlane are likely to grow by 30% and 37%, according to brokerage firm Prabhudas Lilladher.

Also Read: Adani Ports Q4 Results: Net profit jumps 76% YoY to ₹2,040 crore; declares dividend of ₹6

Titan’s jewelry segment is expected to grow by 18.5%, with a five-year revenue CAGR of 21.4%. Watches and Eyewear sales are likely to be under pressure with growth of 5% and decline of 1%, respectively.

At the operational front, Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) during the quarter ended March 2024 may increase 11.8% to ₹1,297.8 crore from ₹1,160.5, while EBITDA margin is likely to expand by 73 bps to 11.53% from 10.8%, YoY, as per the estimates.

In its preliminary Q4 business update, Titan said it registered a revenue growth of around 17% YoY in the quarter. Its Jewellery domestic operations grew 19% YoY led by both buyers and same store sales clocking healthy double digit growths.

Read here: Titan Q4 update: Tata Group company posts 17% revenue growth in Q4 FY24, adds 86 stores

Watches & Wearables domestic business grew 7%, while EyeCare Division’s revenue declined by 1% YoY. In Emerging Businesses, Taneira’s revenue grew 37%, while Caratlane’s business grew 30% YoY.

Titan added over 86 new stores in Q4, expanding its retail network presence to 3,035 stores in India.

Going ahead, the company’s outlook on international business expansion will be a key monitorable.

Titan share price has fallen nearly 5% in one month, while the stock is down over 2% year-to-date (YTD). In the past one year, Titan shares have gained over 34%.

On Thursday, Titan shares ended 0.55% lower at ₹3,569.50 apiece on the BSE. 

Read all Q4 results here

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 02 May 2024, 03:04 PM IST