Q3 results: Titan posts surprise net profit fall, shares sink over 1%

Tata group-owned Titan reported a surprise fall in third-quarter profit on Thursday as gross margins were impacted during the quarter, sending the company’s shares down to an over six-month low intraday.

Shares of Titan, which also sells eyewear and owns the Tanishq jewellery brand, touched a low of Rs 2,268.90 per share after its results were announced, and closed down 1.8 per cent at Rs 2,304.95 per share in Thursday’s trade on the BSE.

Titan’s profit fell 9.8 per cent to Rs 913 crore in the three months ended December 31, from Rs 1,012 crore a year earlier. Analysts, on average, were expecting Titan’s profit to rise to Rs 1,035 crore, according to Refinitiv IBES data.

The quarter witnessed a strong festive consumer demand, Titan Company Managing Director C K Venkataraman said. 

“We continue to pursue market share growth and are actively investing in capabilities across all of our business segments,” he added.

Its jewellery business witnessed an increase of 15 per cent (including the sale of gold ingots) to Rs 10,446 crore.

Its consolidated total income during the quarter under review stood at Rs 11,698 crore compared to Rs 10,094 crore in the year-ago period. The total expenses rose to Rs 10,454 crore from Rs 8,750 crore in the third quarter last financial year, the company said.

Watches and wearables continued a robust growth trajectory, recording a total income of Rs 811 crore, up 14.2 per cent from the year-ago period. The Eye Care category clocked income of Rs 174 crore, up 12 per cent.

A rise in gold prices has led to a 3 per cent fall in consumption in India, the world’s second-biggest bullion buyer, the World Gold Council said in a report on Tuesday.

Elevated retail inflation levels further hit the rural sector, which usually constitutes for two-thirds of gold sales.

Bullion demand is usually high in India around festivals. However, this period saw fewer wedding dates last year.