Titan Company’s share price declined more than 3% in morning trade on Wednesday following its Q3 (October-December) results that were announced post-market hours on Tuesday.
Titan Company’s share price opened at ₹3,574 apiece on the BSE today, slightly lower than the previous closing price of ₹3,599. The Titan Company share price thereafter dipped to the lows of ₹3,481.85, marking a decline of more than 3%.
Titan Company Q3 Results
Despite a 25% year-over-year (YoY) increase in total income to ₹17,723 crore, Titan, a Tata Group company, reported a 0.6% decrease in its consolidated net profit for the third quarter, totaling ₹1,047 crores on Tuesday.
The impact of a decrease in customs duty on gold was the key reason why the company’s earnings before tax remained constant at ₹1,396 crore. Titan attributed the lower profitability numbers during the quarter ending December 2024 to losses from inventories retained during the tariff adjustment being completely accounted for.
EBIT (earnings before interest and Tax) margins decreased by 177 basis points to 9.2%, while consolidated EBIT increased by 5% year-over-year (YoY) to ₹1,627 crore.
Analysts Views On Titan Q3 Results
Motilal Oswal Financial Services (MOFSL) said that Titan Q3 results showed robust growth with an in-line jewelry EBIT margin.
Standalone sales (ex-bullion) grew 25% to close to ₹14,700 crore versus Motilal Oswal Financial Services estimates of ₹14,510 crore. There were no bullion sales made during the quarter.
The growth, as per the brokerage, was led by the strong festive demand, higher gold prices, and a 29% growth in wedding purchases.
Standalone EBIT (ex-bullion) was at ₹1,650 crore, and EBIT margin contracted 100bp YoY to 11.2% versus Motilal Oswal Financial Services estimates of 11.1%, adjusting the custom duty impact.
MOFSL currently has a ‘Buy’ rating on Titan Company with a target price of ₹3,588.
Market Reaction
Following the release of these results, Titan’s stock price reacted negatively. On February 5, 2025, shares of Titan Company fell by 2.48%, closing at ₹3,509.80 on the Bombay Stock Exchange (BSE) after previously trading at approximately ₹3,599.2.
The market sentiment reflected concerns over the company’s ability to maintain profitability amid rising costs and regulatory changes affecting gold imports.