Titan Q1FY24 Preview: Net Profit Set to Surge 21.9%, Operating Margin May Tighten.


Titan, a leading player in the jewellery and accessories industry, is gearing up to unveil its financial results for the April-June quarter on August 2. Analysts anticipate the company to post robust performance during the period, with consolidated net profit projected to reach Rs 923.2 crore. This figure represents a remarkable 21.9 percent surge compared to the same period last year and an impressive 31.7 percent increase over the previous quarter, according to estimates from four brokerage firms.

Titan Q1FY24 Preview: Net Profit Set to Surge 21.9%, Operating Margin May Tighten.

Revenue figures are equally promising, expected to reach Rs 10,723 crore in Q1FY24. The projected 20 percent year-on-year growth and a 10.8 percent quarter-on-quarter increase indicate a positive trend for Titan's financial health.

Jewellery sales are anticipated to pick up pace in the later part of the quarter, following a sluggish start in the first half of April. Demand regained momentum as the auspicious occasion of Akshay Tritiya, celebrated on April 22, drove significant sales in Titan's jewellery business.

However, the projected net profit growth is accompanied by a marginal decline in operating profit margin. Expected to be around 12.77 percent, the figure represents a 34 basis points decrease compared to the same period last year. Despite this, there's still a notable improvement of 189 basis points when compared to the previous quarter.

Shine bright like a diamond! Titan's Q1FY24 results reflect a glittering 21.9% net profit surge and a dazzling 10.8% revenue increase.

Motilal Oswal, in its Q1FY24 earnings preview, suggested that the "Earnings Before Income Tax Depreciation Amortisation (EBITDA) margin is likely to remain flat year-on-year on gold price volatility." During the April-to-June quarter, gold prices witnessed a substantial 16.9 percent year-on-year growth, as reported by Incred Research.

In line with the positive outlook, Titan expects its jewellery business to grow by 21 percent year-on-year. Additionally, the watches and wearables segment is estimated to register a 13 percent year-on-year growth, while the eyecare segment is expected to experience a 10 percent increase during the same period. Caratlane, Titan's jewellery brand, is set to be the star performer with an anticipated 32 percent year-on-year growth.

Titan's management expressed satisfaction with the buying momentum for both their brand and international offerings. Consumer preferences for premium brands have led to an uptick in the average selling price for watches, further supporting their positive outlook. Among the key sales channels, Helios, Large Format Stores, and e-commerce witnessed higher growth rates compared to others.

Despite the optimistic projections, market participants are advised to exercise caution and consult certified experts before making any investment decisions. The views and investment tips expressed by experts are their own and not endorsed by the website or its management.

In conclusion, Titan appears to be poised for strong financial performance in Q1FY24, driven by its jewellery business and a rebound in demand for premium watches. The company's ability to adapt to market dynamics will likely play a significant role in determining its performance in the future. Investors eagerly await the official release of the financial results to get a comprehensive understanding of Titan's performance during the quarter.

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