- 04 Feb 2022
- ICICIdirect Research
Titan reports all-time high quarterly net profitTITAN - 2856 Change: -5.95 (-0.21 %)
News: Titan’s revenue grew by 32% YoY to Rs.10037 crore. Underlying gross margin has been gradually improving and was at best levels over the recent six quarters in Q3FY22 at 25.3%. The company reported one of its highest ever EBITDA margin of 14.4% in Q3FY22. Absolute EBITDA stood at Rs.1442.0 crore. Consequently, the company reported its highest ever quarterly PAT of Rs.1012.0 crore.
Views: Titan’s Q3FY22 result was better than our estimates owing to all time high EBITDA margins which was aided by strong gross margin performance and stringent cost control measures. Titan appears to have benefitted from the financial and operational stress witnessed by unorganised players (during the pandemic) who are still grappling with the negative impact on their business. We believe that company is well placed to continue to gain market share from unorganised players and recent regulatory changes like compulsory gold hallmarking is likely to accelerate the pace of market share gain for organised players.