ETMarkets.comTitan Company is likely to report revenue for the quarter ended September on Friday, led by strong performance of all the business verticals.
In its provisional update, Titan had said the overall sales volume in the second quarter grew 18% on year, led by a similar growth in the jewellery segment, along with 20% growth in watches and wearables.
While plain gold jewellery saw a low double-digit growth, studded gold jewellery sales rose by more than 18%.
Brokerage Securities expect Titan to report a 15% on-year growth on the jewellery segment, and a robust 20% growth in watches and wearables.
Strong demand for jewellery during the festive season is likely to have aided Titan, which derives more than 80% of revenue from this segment.
The company added 25 new jewellery stores in the last quarter, and 23 in the wearables segment.
Analysts’ view on the profitability front is mixed, with some seeing an improvement while others expect flat or even a fall in margin.
Kotak Institutional Equities expects a 40 basis points drop in the margin, Motilal Oswal expects it to be flat, Phillip Capital sees a YoY expansion due to operating leverage benefits.
On the segmental front, Kotak Equities expects earnings before interest and tax (EBIT) margin of 12.6% for the jewellery business, 11.75% EBIT margin for watches; and 16.5% for the eyewear segment.
Consolidated net profit for the quarter is seen rising nearly 12% on year to Rs 714 crore, according to the average of estimates given by four brokerages.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
In its provisional update, Titan had said the overall sales volume in the second quarter grew 18% on year, led by a similar growth in the jewellery segment, along with 20% growth in watches and wearables.
While plain gold jewellery saw a low double-digit growth, studded gold jewellery sales rose by more than 18%.
Brokerage Securities expect Titan to report a 15% on-year growth on the jewellery segment, and a robust 20% growth in watches and wearables.
Strong demand for jewellery during the festive season is likely to have aided Titan, which derives more than 80% of revenue from this segment.
The company added 25 new jewellery stores in the last quarter, and 23 in the wearables segment.
Analysts’ view on the profitability front is mixed, with some seeing an improvement while others expect flat or even a fall in margin.
Kotak Institutional Equities expects a 40 basis points drop in the margin, Motilal Oswal expects it to be flat, Phillip Capital sees a YoY expansion due to operating leverage benefits.
On the segmental front, Kotak Equities expects earnings before interest and tax (EBIT) margin of 12.6% for the jewellery business, 11.75% EBIT margin for watches; and 16.5% for the eyewear segment.
Consolidated net profit for the quarter is seen rising nearly 12% on year to Rs 714 crore, according to the average of estimates given by four brokerages.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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