Titan Company is likely to report 6-21 per cent year-on-year rise in net profit for the March quarter on a 20 per cent -plus rise in sales for the June quarter. Analysts noted that jewellery demand was strong since Akshaya Tritiya, which continued through wedding sales in June despite volatility in the gold price during the quarter.
Phillip Capital sees profit for the quarter rising 16.9 per cent YoY to Rs 926 crore compared with Rs 793 crore in the same quarter last year. It sees revenue rising 20.7 per cent YoY to Rs 10,818.20 crore compared with Rs 8,961 crore in the year-ago quarter. Favourable base, higher gold price and higher number of wedding days will drive revenue growth, it said. The brokerage said Ebitda margins may see 80 bps YoY decline as benefit of inventory gains on diamond no longer be available.
HDFC Institutional Equities pegs profit figure at Rs 960 crore, up 21.3 per cent YoY. It sees sales at Rs 11,510 crore, up 21.8 per cent YoY.
Kotak Institutional Equities, however, sees Titan Company’s net profit at Rs 837.20 crore, up to 5.6 per cent year-on-year (YoY). Revenue is seen rising 8.7 per cent YoY to Rs 9,741.30 crore. Ebitda margin is seen falling 34 basis points to 12.7 per cent from 13 per cent YoY, as the base quarter margin was partly aided by certain one-off gains.
“We model 12 per cent YoY growth in standalone jewellery sales on LFL basis (excluding sale of gold bullion) and on a high base. While the demand softness continued in the first half of April, Titan had noted a revival once the festive period (Akshaya Tritiya) started. Correction in gold prices towards the end of quarter would have led to some improvement in sales growth in June,” the brokerage said.
It expects 20 per cent YoY growth in watches and 22 per cent YoY growth in eyewear (aided by store growth) segment.
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