Apart from the above, companies like Britannia, Aeroflex Industries, IDFC, Infibeam Avenues, Ion Exchange, LIC Housing Finance, Lloyds Enterprises, NIIT, Samhi Hotels, Saregama will also declare their June quarter results.
Titan Q1 expectations
Titan is expected to see a tepid first quarter amid lower number of wedding days, rising gold prices and increasing competition from regional players.Net sales for April-June 2024 are likely to rise 6% year-on-year, according to an average estimate of four brokerages. Meanwhile, net profit for the quarter is likely to decline marginally by 1%.
The most optimistic estimate for the profit is by Motilal Oswal, where it expects the bottomline to grow around 10% year-on-year.
In the preceding March quarter, the consumer discretionary major reported a 7% year-on-year jump in its standalone net profit at Rs 786 crore. Net sales in January-March 2024 period advanced 17% YoY to Rs 10,047 crore.
Analysts expect standalone jewelry EBIT margin of 10.8%. Jewelry EBIT margin in the June quarter is usually 100-125 bps lower than full-year margins, owing to lower studded sales
In addition to this, higher competitive intensity resulting in rationalization of gold rate mark-up, higher investments in gold exchange programs and gold rate protection offers (necessitated by sharp rise in gold price) are offsetting the gains from operating leverage and a reduction in franchisee commissions.
“We expect consol. revenue growth of 10% YoY in 1QFY25. We anticipate jewelry segment revenue growth of 9% YoY (ex-bullion), with a five-year revenue CAGR of 20%. GP margin expected to expand by 50 bps YoY to 22.7%. There would be pressure on margin due to increase in competition and gold prices,” said Motilal Oswal.
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