Titan Company Limited Q1 FY23 Result Updates.
13-fold jump in year-on-year net profit at Rs 793 crores.
Titan reported a net profit of Rs. 793 crores, up by from Rs. 61 crores in Q1 FY23.
Total income for the June quarter jumped by 199% a YoY to Rs 8,649 crore compared with Rs 2,890 in Q1 FY22, driven by strong festive demand in a near normal Q1 that came after a gap of two Covid disrupted periods.
Advertising and campaign expenses stood at Rs. 171 crores, increased by 373% YoY as the company ramped up investing in brands across businesses. Standalone EBIT at Rs. 1,121 crores soared by 478% YoY from Rs. 209 crores with margins at 13.0% was the best for the Q1 period and second best overall in the last 3 years.
Profit before tax stood at Rs. 1066 crores from Rs. 82 crores in Q1 FY22.
All the key Divisions recorded healthy margins aided by better realizations across product categories.
Titan’s jewellry business registered an income (excluding bullion sales) of Rs 7,600 crore compared with Rs 2,467 crore in the year-ago quarter, up 208 % YoY led by a good Akshaya Tritiya sales and a better-studded mix compared to June 2021. Sales growth was driven by both buyer and ticket sizes, with new buyer contribution continuing to be quite robust at 46%. Whilst the wedding segment recorded a healthy growth of 178% YoY, its contribution to the overall sales was marginally lower. The studded sales ratio at 26% is moderately better than pre-pandemic levels for the first quarter, indicating a full recovery. Jewellry business reported an EBIT of Rs 1,027 crore against Rs 207 crore in the same quarter of the previous year.
The watches and wearables business reported its best quarterly income of Rs 785 crore, up 169% against Rs 292 crore YoY. The watches and wearables business reported an of EBIT of Rs 103 crore against a loss of, Rs 56 crore YoY.
Eyecare business also reported its highest quarterly income of Rs 183 crore, up 173% over Rs 67 crore YoY. Eyecare business reported an EBIT of Rs 36 crore against a loss of Rs 13 crore YoY.
Other businesses comprising Indian dress wear and fragrances & fashion accessories reported a 300% YoY rise in income at Rs 56 crore compared with Rs 14 crore YoY. Other businesses reported a loss of Rs 10 crore against a loss of Rs 16 crore YoY.
The company said it added a net of 125 stores during the year. The company’s retail chain (including Caratlane) has 2,303 stores across 366 towns with an area exceeding 2.9 million square feet, as of June 2022.
The shares of Titan Company Limited are trading at Rs. 2440, up by 034%.
The return on equity (ROE) is 26.4% for June 2022. The price-to-earning (P/E) ratio stood at 73.1. The return on capital employed (ROCE) for the company is 21.4%. The price to book value of Titan Company Limited is 23.4. The EV/EBITDA is 48.2. EPS for the quarter is Rs. 3.31.