Titan Q4 Preview: PAT may rise up to 34% on broad-based growth across segments
Titan is expected to deliver strong Q4 results, driven by a favourable base year and robust demand for wedding jewellery. The watches and wearables and emerging business segments also showed strong performance. According to five brokerages, Titan'...
By Akash Podishetti, ETMarkets.com | Updated:
Titan Q4 Results: PAT jumps 50% YoY to Rs 734 crore; dividend declared at Rs 10 per share
Consumer discretionary major Titan is expected to report healthy numbers for the quarter ended March, led by a favourable base of last year and robust wedding demand for its jewellery business. The quarter also saw strong show from watches and wearables and emerging business segments.
The last-year quarter saw disruptions due to partial lockdowns and weak consumer sentiments, caused by a fragile geo-political situation.
The company is expected to report profit growth anywhere between 26 and 34% year-on-year, according to an average estimate of five brokerages, while revenue is seen growing 25-29%.
In its fourth quarter update, Titan saw healthy double-digit growth across its key businesses. Segment wise, the jewellery division clocked 23% year-on-year growth, led by buyers — new and repeat — and increase in ticket size.
The watches and wearables segment clocked growth of 41% year-on-year, underpinned by strong sales in analog watches segment and almost tripling of revenues from wearables.
Emerging business, which includes fragrances & fashion accessories (F&FA) and Indian dress wear, emerged as a winner among all the segments with 81% year-on-year growth in the March quarter.
The company had 2,710 stores at the end of the fourth quarter.
“We model 15% YoY growth in standalone jewellery sales on LFL basis (excluding sale of gold bullion). We gather that the quarter started on a strong note (favorable base) but demand moderated a bit in the month of March," Kotak Institutional Equities said.
The company's EBITDA margins are seen expanding anywhere between 70 bps and 130 bps year-on-year, aided by better operating efficiencies.
Segment wise, analysts estimate EBIT margins for jewellery to be around 11.7%, 10.1% for watches segment and around 13.5% for the eyewear business.
Some of the key monitorables in the results include commentary on gains in the South market, volume growth and also outlook on international business expansion.
In the third quarter, Titan's net profit dipped 4% to Rs 951 crore, while sales rose 11% to Rs 10,444 crore. Shares of the company have risen 4% this year, while gaining 12% in the last one year period
The last-year quarter saw disruptions due to partial lockdowns and weak consumer sentiments, caused by a fragile geo-political situation.
The company is expected to report profit growth anywhere between 26 and 34% year-on-year, according to an average estimate of five brokerages, while revenue is seen growing 25-29%.
In its fourth quarter update, Titan saw healthy double-digit growth across its key businesses. Segment wise, the jewellery division clocked 23% year-on-year growth, led by buyers — new and repeat — and increase in ticket size.
The watches and wearables segment clocked growth of 41% year-on-year, underpinned by strong sales in analog watches segment and almost tripling of revenues from wearables.
Emerging business, which includes fragrances & fashion accessories (F&FA) and Indian dress wear, emerged as a winner among all the segments with 81% year-on-year growth in the March quarter.
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The company had 2,710 stores at the end of the fourth quarter.
“We model 15% YoY growth in standalone jewellery sales on LFL basis (excluding sale of gold bullion). We gather that the quarter started on a strong note (favorable base) but demand moderated a bit in the month of March," Kotak Institutional Equities said.
The company's EBITDA margins are seen expanding anywhere between 70 bps and 130 bps year-on-year, aided by better operating efficiencies.
Segment wise, analysts estimate EBIT margins for jewellery to be around 11.7%, 10.1% for watches segment and around 13.5% for the eyewear business.
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Some of the key monitorables in the results include commentary on gains in the South market, volume growth and also outlook on international business expansion.
In the third quarter, Titan's net profit dipped 4% to Rs 951 crore, while sales rose 11% to Rs 10,444 crore. Shares of the company have risen 4% this year, while gaining 12% in the last one year period
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