Shares of the watch-to-jewellery main Titan in Wednesday’s session fell over 2 per cent to the day’s low of Rs 3,512.65 after the corporate posted lower-than-expected working margin for the quarter ended December 31, 2024. For the assessment interval, the corporate’s standalone web revenue declined 5 per cent on-year, falling in need of analysts’ expectations. Based on analysts, customs responsibility modifications on gold impacted Titan’s profitability with a major dent in its gross margin inflicting operational stress.
Revenue for Q3FY25 got here in at Rs 990 crore as towards Rs 1,040 crore in Q3FY24, whereas Zee Enterprise analysis estimated revenue to stay regular year-on-year.
Titan’s quarterly income, nevertheless, elevated 23.3 per cent on a year-on-year (YoY) foundation to Rs 16,097 crore, based on a regulatory submitting. The identical stood at Rs 13,052 crore within the corresponding interval of the earlier 12 months. The analysis desk, nevertheless, projected income at Rs 16,528 crore for the assessment quarter.
Titan’s operational efficiency throughout Q3
Titan’s third-quarter earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) stood at Rs 1,510 crore, a rise of 4.0 per cent over the year-ago interval.
Its margin contracted to 9.4 per cent from 11.2 per cent a 12 months in the past, based on the submitting. Zee Enterprise analysts had pegged Titan’s Q3 EBITDA at Rs 1,630 crore and margin at 9.9 per cent.
What international brokerages make of Titan’s Q3 earnings
Goldman Sachs continues with its ‘purchase’ name on the inventory and has raised the goal to Rs 3,900 from Rs 3,650 earlier. The brokerage identified that jewelry margin in the course of the assessment interval got here in increased than estimates. Additionally, it expects robust income development momentum prone to maintain within the jewelry phase. It added that wedding-related jewelry buy was vital in the course of the December quarter, up 29 per cent on-year.
Additionally, acceleration in studded jewelry is seen to ease issues relating to lab-grown diamond on the firm.
Moreover, the brokerage acknowledged robust development within the watches and eyewear phase. and raised FY25/26/27 EPS estimates by 1.6 per cent/ 2.4 per cent/ 2.4 per cent.
