India’s Tata-owned Titan misses Q3 profit estimates on surging gold prices | India Business News – Times of India

BENGALURU: Indian jeweller and watch maker Titan Company reported third-quarter profit below estimates on Thursday as escalating costs of bullion outshined demand during the festive season.
The company’s profit rose 9.4% to 10.40 billion rupees ($125.33 million) in the three months ended Dec. 31, but fell short of analysts’ estimate of 10.94 billion rupees, according to LSEG data.
Titan, a joint venture between salt-to-software conglomerate Tata Group and Tamilnadu Industrial Development Corp, said the total cost of materials consumed rose 36% owing to a rise in the price of its key raw material, gold.
Other costs, including finances, drove total expenses up 22% to 11.85 billion rupees.
As a result, its earnings before interest and tax (EBIT) margin contracted to 11.3% from 12.5% a year earlier.
Titan’s jewellery segment that houses brands like Tanishq and CaratLane posted a revenue growth of 23%, led by festive season sales.
Its watches and wearables segment, which sells products of brands like Fastrack, Police and Coach, saw a 21% rise in revenue but accrued a 38% dip in profit.
The eye care business, which is smaller in terms of revenue contribution, saw a 3% fall in revenue. It owns the brands Fastrack, Ray-Ban and Tommy Hilfiger.
Rival Kalyan Jewellers, which reported quarterly results on Wednesday, saw a nearly 22% rise in profit.
Titan’s share fell as much as 2.6% after the results, before closing down 1.9%.

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