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Titan Earnings Preview: Strong sales may aid profit, margin likely to be flat

Titan Earnings Preview: Strong sales may aid profit, margin likely to be flat

Titan Earnings Preview: Strong sales may aid profit, margin likely to be flat
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By Mangalam Maloo   | Hormaz Fatakia  Nov 4, 2022 8:18:14 AM IST (Published)

Shares of Titan are trading near an all-time high ahead of earnings.

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Titan Company Ltd. is likely to report a healthy quarter courtesy a strong business update which it shared early last month.
Overall sales have risen 18 percent for the quarter. A CNBC-TV18 poll expects the company's operating profit to increase by a similar quantum while net profit may also report healthy growth.
Margin is likely to remain flat on a year-on-year basis.
The company's jewellery division, which contributes to nearly 90 percent of the overall topline, registered 18 percent growth from last year on a high base. The division had grown 66 percent during the September 2021 quarter aided by pent-up demand and spillover purchases due to the pandemic.
Within the jewellery business CaratLane saw growth of 56 percent from last year. Among the categories, solitaires grew the fastest, followed by studded and gold jewelry.
Among Titan's other businesses, only the eyecare business grew in single-digits while the others grew anywhere between 20-60 percent.
Eye+ stores also witnessed healthy double-digit growth during the quarter which was offset by lower sales across the trade and distribution channel. 36 new Titan Eye+ stores were opened during the quarter.
Titan's watches division clocked its highest quarterly revenue in September. Premiumisation, coupled with transformation of retail stores by offering a wider choice of premium brands to customers, contributed to the business' 20 percent year-on-year growth during the quarter.
Shares of Titan are trading near their all-time high of Rs 2,791 ahead of their results. The stock is trading at a valuation of 65 times next year forward earnings. Shares have gained 10 percent this year.
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