Titan's ad spending jumps 23.8% to Rs 250 cr in Q2
The profit for this quarter was Rs 705 crore compared to last last quarter's Rs 770 crores indicating approximately an 8.4% decline.
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The standalone results for advertising expenses of Titan was recorded at Rs 250 crores compared to Rs 202 crores leading to an increase of Rs 48 crores (approximately 23.8%).
The advertising expenses (consolidated) for this quarter was recorded at Rs 327 crores compared to Rs 290 crores in the last quarter indicating an increase of Rs 37 crores (approximately 12.8%).
On a standalone basis, the profit for this quarter was Rs 705 crore compared to last last quarter's Rs 770 crores indicating approximately an 8.4% decline.
The net profit for Titan in the consolidated financial results declined between the last quarter and this quarter. For this quarter, it was Rs 704 crores compared to last quarter's Rs 715 crores.
CK Venkataraman, Managing Director of the Company stated that, "After a muted Ql, Q2 witnessed encouraging growth across key businesses. Jewellery clocked healthy double digit growth for the quarter. Our portfolio approach in this business of straddling diverse customer needs through the brands of Tanishq, Mia, Zoya and Caratlane is working well. The buyer growth metrics were fairly strong and in good double-digits across gold and studded product categories Titan's revenue from India showed a strong increase, while revenue from international markets decreased slightly.
Jewellery continued to be the largest revenue driver with steady growth. Total Income for the quarter grew 26% over Q2FY24 to Rs 763 crores. The India business grew 25% in the same period. EBIT at ~932 crores came at a margin of 8.7% for the quarter. Normalizing the custom duty impact, Q2FY25 EBIT came at ~1,222 crores, clocking 11.4% margin.
The custom duty reduction saw revival in consumer interest as gold prices cooled off temporarily. The ensuing gold rush lasted well into mid-September. Buyer growth was healthy and well accompanied by increase in average selling prices, both exhibiting double-digit growths. During the quarter, in India, Tanishq opened 11 new stores (net), Mia added 12 and Zoya added 1 store respectively.
Watches & Wearables: Business recorded a Total Income of Rs 1301 crores, up 19% over Q2FY24. The domestic business grew 19% in the same period. EBIT came in at ~194 crores clocking a margin of 14.9% for the quarter. Analog segment recorded a strong 26% Revenue growth over Q2FY24 led by Titan brand clocking 32% growth in the same period. Consumer preferences for premium brands was clearly visible with Helios channel (international brand sales) clocking a healthy retail growth of 43% over Q2FY24. Wearables segment saw a 13% drop in their Revenue compared to Q2FY24 primarily due to reduction in average selling prices. 34 stores (net) were added in Q2FY25 comprising of 18 new stores in Titan World, 14 in Helios and 2 in Fastrack respectively.
EyeCare: Total Income of ~201 crores in Q2FY25 grew 7% over Q2FY24. Business recorded an EBIT of Rs 24 crores clocking a margin of 11.9% for the quarter. Frames and Lenses saw healthy growth in volumes. Sunglasses recorded a volume decline due to seasonality. International brand sales recorded a strong growth 53% over Q2FY24. Business increased its promotional activities leading to a double-digit growth in advertising compared to the same period last year. Division added 3 new stores (net) during the quarter in Titan Eye+.
Emerging Businesses: The Emerging Businesses comprising of Indian Dress Wear ('Taneira'), Fragrances, Fashion Accessories (F&FA) recorded a Total Income of ~106 crores for Q2FY25 growing 14% over Q2FY24. Taneira's sales grew 12% compared to Q2FY24 mainly driven by growth from new stores. The brand opened 4 new stores during the quarter, taking the total store count to 81 stores covering 41 cities. The F&FA business grew 16% compared to Q2FY24 (excluding the discontinued belts and wallets sub-segment, comparable growth was 33% in the same period). Within sub-segments, Fragrances (SKINN) grew 19% and Women's Bags (IRTH & Fastrack) grew 76% respectively over Q2FY24. The Emerging Businesses together recorded a loss of ~29 crores for the quarter.
