Profits of Titan’s jewellery segment fall by 19.96% in Q2 to Rs 974 crore

Overall, the Tata Group’s Titan Company Limited – parent company of Tanishq and Caratlane – announced a 23% decline in net profit in the July to September quarter to Rs 704 crore, compared year-on-year with the same quarter the previous year

New Delhi: In financial results announced this week, Titan Company Ltd revealed that profits of its jewellery segment fell by 19.96% in the July to September quarter to Rs 974 crore, compared to Rs 1,217 crore a year ago.

The Titan Company recorded a 23% fall in net profits to Rs 704 crore in Q2 of the financial year 2024-25, compared to Rs 916 crore in the same quarter the previous year, according to the company’s BSE filing. The company’s revenue from core operations rose 25.8% to Rs13,473 crore in Q2, compared to Rs 10,708 crore in the same period the previous year.

Titan’s total expenses for the quarter increased 20% to Rs 13,709 crore, compared to Rs 11,402 crore a year ago. The company incurred most of its expenses in the cost of materials and component consumed segment.

Even though the company’s revenues from its Watches and Wearables, Jewellery, Eyecare, etc., segments fuelled the overall 25.8% surge in sales, the profits from the most lucrative business, jewellery, fell for the second quarter.

Meanwhile, CaratLane, the omnichannel jewellery brand owned by Titan Company, has posted a 28% year-on-year growth in its total income for the second quarter of the financial year 2024-25 (Q2 FY25). The company’s total income reached Rs 829 crore, driven by strong customer demand for its studded jewellery products.

The company highlighted that customer acquisition was buoyed by activations in July and August 2024, resulting in a 21% increase in new customers and a 30% boost in brand searches compared to the same period last year.

CaratLane also expanded its physical footprint during the quarter, opening 11 new stores across India. This brings its total store count to 286, spanning 119 cities nationwide. The company’s #WearYourWins campaign, launched in July to encourage women to celebrate their achievements, also received significant engagement across multiple channels.

Titan’s foray into jewellery began in 1994 with Tanishq. It entered the luxury segment in 2010 with the sub-brand Zoya. The following year, Titan launched Mia, a line of hand-crafted jewellery for the modern woman. In 2016, Titan acquired CaratLane (Founded in 2008 by Mithun Sacheti and Srinivasa Gopalan) aiming to make everyday elegance affordable and establishing its presence in the e-commerce sector.

Titan has set out an ambitious target to increase its market-share in the jewellery sector to 10-11%, up from the current 8.6%. It aims to double Mia’s and Caratlane’s revenues within three years and increase its wearables market-share, focusing on luxury/premium, women and Gen-Z customers.

Retail Jeweller India News