Company Update : Titan Ltd By Motilal Oswal Financial Services Ltd
Robust growth with in-line Jewelry EBIT margin
Consolidated performance
* TTAN’s consolidated revenue grew 25% YoY to INR177.4b (est. INR184b).
* The non-solitaire category grew in healthy double digits, while growth in the solitaire category remained muted.
* The relatively higher growth in gold jewelry and gold coins impacted the product mix, resulting in a ~1% lower studded share YoY.
* The studded ratio declined 100bp YoY to 23% in 3QFY25. Studded sales grew 21% YoY.
* Gross margin contracted 120bp YoY to 22% (est. 23%), adjusting the custom duty effect of INR2.53b in 3QFY25.
* EBITDA margin was maintained YoY at 10.9% (est. 10.1%).
* Ad spends increased 10% YoY to INR3.7b, other expenses increased 16% YoY to INR10.6b, and employee costs were up 16% YoY to INR5.6b.
* EBITDA grew 23% YoY to INR19.3b (INR18.5b) after adjusting the custom duty in 3QFY25.
* PBT was up 20% YoY to INR16.5b (est. INR16.1b), adjusting the custom duty.
* Adj. PAT was up 18% YoY to INR12.5b (est. INR12.2b).
* In 9MFY25, net sales grew 18%, EBITDA (adjusted) was up 15%, while APAT was up 6%.
Segmental Performance:
Jewelry Segment
* Standalone sales (ex-bullion) grew 25% to INR147.0b (est. INR145.1). There were no bullion sales made during the quarter.
* The growth was led by the strong festive demand, higher gold prices, and 29% growth in wedding purchases.
* Standalone EBIT (ex-bullion) was at INR16.5b and EBIT margin contracted 100bp YoY to 11.2% (est. 11.1%), adjusting the custom duty impact.
* Consolidated sales grew 27% YoY to INR161.3b (est. INR167.0b) (exbullion, sales grew 27% to INR160b).
* Consolidated EBIT margin (adj to custom duty) declined 90bp YoY to 10.9% (est. 10.5%)
Watch Segment
* Watch sales grew 15% YoY to INR11.4b (est. INR11.5b).
* EBIT margin was up 380bp YoY to 9.5% (est. 9%).
Eye Care
* Eye care sales grew 17% YoY to INR2.0b (est. INR1.9b).
* EBIT margin was up 250bp YoY to 10.2% (est. 14%)
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SEBI Registration number is INH000000412
