Editor’s Note
Titan’s latest quarterly forecast highlights robust overall growth, yet underscores a key vulnerability. While net profit is projected to surge, the core jewellery business—accounting for the vast majority of revenue—faces headwinds from elevated gold prices and shifting consumer timing. This report details the segment-by-segment performance shaping these headline figures.
Titan Company projects a 38% year-on-year increase in net profit and 10-13% revenue growth for the quarter. The jewellery segment, contributing 88% of revenue, faces challenges due to high gold prices and delayed festive purchases. Standalone jewellery sales are expected to grow 12-14%, while CaratLane revenue is projected to rise 25%. Watches and eyewear segments anticipate double-digit growth. Studded jewellery shows signs of recovery after four quarters of decline. Jewellery EBIT margins are expected to be slightly lower at 11-11.5%, while CaratLane margins remain flat at 7%.
Titan’s jewellery business, which contributes approximately 88% of the company’s overall revenue, is anticipated to experience moderated sequential growth. This moderation is primarily attributed to two factors:
– Higher gold prices
– Delayed festive purchases
The surge in gold prices, which reportedly saw an 18% increase between August and September, may have led to the postponement of some festive-season purchases.
The projected 38% year-on-year jump in net profit is partly attributed to a low base effect from customs duty adjustments in the previous year. Despite the challenges in the jewellery segment, Titan Company is expected to deliver strong overall performance.
The studded jewellery segment, which has been under pressure for the past four quarters, is showing the first signs of recovery. Its share is expected to remain stable at around 30% of the jewellery business.
CaratLane, Titan’s online jewellery platform, continues to show robust growth with a projected 25% year-on-year increase in revenue, albeit with flat margins.
While the jewellery business faces some short-term challenges due to elevated gold prices, the company’s diversified portfolio, including its watches and eyewear divisions, is expected to contribute positively to overall growth.
Investors and market watchers will be keenly observing how Titan navigates these market dynamics and whether the company can maintain its growth trajectory in the face of fluctuating precious metal prices and shifting consumer behavior.