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Titan Company ‘s Q2 Update: Profit Falls by 23.14% Year-on-Year

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Highlights

  • The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
  • Sales over the Year and quarter: The company experienced a substantial growth of 16 % in the past year, substantial increase in net sales/revenue by 9.56 %.
  • Income over the Year and quarter: There has been decline in other income over the past year which is -1.6 %, Marginal increase in other income during this quarter, up by 2.5%.
  • Profit over the Year and quarter: Challenges in sustaining profitability for Titan Company Limited. Profit dropped by -23.14 % Year to Year, Titan Company Limited’s profitability dropped by -1.54 % Quarter to Quarter.
  • EPS over the Year and quarter: EPS declined by -22.99 % Year to Year. EPS decreased by -1.49 % in previous quarter. Analysis needed for shareholder value.

The comprehensive analytics outlining the performance and outlook of Titan Company Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Metrics Previous Year Previous Quarter Current Quarter Quarter to Quarter Difference Year to Year Difference
Sales Rs. 12529 Cr Rs. 13266 Cr Rs. 14534 Cr + 9.56 % + 16 %
Expenses Rs. 11118 Cr Rs. 12019 Cr Rs. 13298 Cr + 10.64 % + 19.61 %
Operating Profit Rs. 1411 Cr Rs. 1247 Cr Rs. 1236 Cr -0.88 % -12.4 %
OPM % 11.26 % 9.4 % 8.5 % -0.9 % -2.76 %
Other Income Rs. 125 Cr Rs. 120 Cr Rs. 123 Cr + 2.5 % -1.6 %
Interest Rs. 140 Cr Rs. 230 Cr Rs. 240 Cr + 4.35 % + 71.43 %
Depreciation Rs. 144 Cr Rs. 164 Cr Rs. 171 Cr + 4.27 % + 18.75 %
Profit before tax Rs. 1252 Cr Rs. 973 Cr Rs. 948 Cr -2.57 % -24.28 %
Tax % 26.86 % 26.52 % 25.77 % -0.75 % -1.09 %
Net Profit Rs. 916 Cr Rs. 715 Cr Rs. 704 Cr -1.54 % -23.14 %
EPS in Rs Rs. 10.31 Rs. 8.06 Rs. 7.93 -1.61 % -23.08 %


Today, we’re looking at Titan Company Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 16 %. However, it did see a marginal increase of 9.56 % from the previous quarter. Expenses ticked up slightly by 10.64 % quarter-on-quarter, aligning with the annual rise of 19.61 %. Operating profit, while down -12.4 % compared to last year, faced a quarter-on-quarter dip of -0.88 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -2.76 %, but a shrinkage of -0.9 % sequentially. Other income rose by 2.5 % compared to the last quarter, despite an annual decline of -1.6 %. Interest expenses surged remarkably by 4.35 % from the previous quarter, yet the year-over-year increase remains at a moderate 71.43 %. Depreciation costs climbed by 4.27 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 18.75 %. Profit before tax declined annually by -24.28 % but saw a reduction from the preceding quarter by -2.57 %.
Tax expenses as a percentage of profits decreased slightly by -1.09 % compared to last year, with a more notable quarter-on-quarter decrease of -0.75 %. Net profit fell by -23.14 % year-on-year but witnessed a -1.54 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -23.08 % but a quarterly fall of -1.61 %. In summary, Titan Company Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

Metrics Previous Year Previous Quarter Current Quarter Quarter to Quarter Difference Year to Year Difference
Sales Rs. 12529 Cr Rs. 13266 Cr Rs. 14534 Cr + 9.56 % + 16 %
Expenses Rs. 11118 Cr Rs. 12019 Cr Rs. 13298 Cr + 10.64 % + 19.61 %
Operating Profit Rs. 1411 Cr Rs. 1247 Cr Rs. 1236 Cr -0.88 % -12.4 %
Net Profit Rs. 916 Cr Rs. 715 Cr Rs. 704 Cr -1.54 % -23.14 %
EPS in Rs Rs. 10.31 Rs. 8.06 Rs. 7.93 -1.61 % -23.08 %


In reviewing Titan Company Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 16 % year-on-year growth, however, there was a minor increase of 9.56 % from the previous quarter. Expenses rose by 19.61 % compared to the previous year, with a 10.64 % increase quarter-on-quarter. Operating Profit dropped by -12.4 % annually, and saw a -0.88 % decrease from the last quarter.
Net Profit showed yearly decrease of -23.14 %, and experienced a -1.54 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -23.08 % annually, however dipped by -1.61 % compared to the last quarter. In essence, while Titan Company Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.

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