Titan Company (TITAN) Q3 24/25 earnings summary

Executive summary

• Q3FY25 saw consolidated revenue grow up to 25.5% year-over-year, reaching as high as ₹17,868 crore, driven by strong festive demand and robust growth in jewellery and watches, with international jewellery revenue up 64% year-over-year.

• Jewellery retail sales grew over 25% YoY, led by gold jewellery and coins, while watches saw up to 20% retail growth; EyeCare and Emerging Businesses also posted double-digit and positive growth, respectively.

• Profitability was impacted by a one-time gold custom duty reduction, resulting in flat PBT and a 0.6% decline in consolidated PAT to ₹1,047 crore.

• Management remains optimistic for FY25, focusing on scaling emerging businesses and maintaining investments across segments.

Financial highlights

• Q3FY25 consolidated total income reached up to ₹17,868 crore, up as much as 25.5% YoY; PAT was ₹1,047 crore, down 0.6% YoY; EBITDA margin was 10.2% (down 181 bps YoY); EBIT margin declined to 9.2%.

• Standalone total income was ₹16,228 crore, up 24.2% YoY; standalone PAT was ₹990 crore, down 4.9% YoY.

• Gross contribution margin declined to 21.5% (down 278 bps YoY) due to product mix and custom duty impact.

• Dividend payout for FY24 was ₹11/share, with a payout ratio of 29%.

Outlook and guidance

• Management expects to end FY25 with strong growth over FY24, focusing on scaling emerging businesses and maintaining investments across segments.

• EBIT margin guidance for jewellery remains at 11%-11.5% on a standalone basis, with a threshold not to go below 11% annually barring extreme situations.

• Cautious outlook for Q4 due to gold price volatility and global economic uncertainties, but confident in long-term growth trajectory.