Titan Company is expected to report double-digit growth across parameters in the quarter ending March 31. The Jewellery-to-watch maker will announce its quarterly results on May 8.
Its recent guidance for FY19 also indicated that trend. While the growth in jewellery business is likely to be in double-digits, an encouraging show from watches, eye wear and other segments was the key takeaway from the company's recent guidance.
For FY19, topline growth would be close to 22 percent year-on-year (YoY) as against a revenue uptick of 24.9 percent YoY in FY18, the company said last month.
According to brokerages, profit growth for the March quarter could be in the range of 19-37 percent and revenue may rise 15-23 percent backed by jewellery as well as watch & eyewear segments.
"We model (1) 24 percent YoY growth in jewellery segment revenues, (2) 17 percent YoY growth in the watches segment revenues driven by share gains and (3) 19 percent growth in eyewear," said Kotak which expects reported PAT growth of 64 percent and adjusted PAT growth of 37 percent on a revenue growth of 23 percent.
ICICI Securities, which expects 19 percent growth in profit and 17 percent in revenue, said despite a challenging scenario for jewellery players, Titan continues to gain market share.
Prabhudas Lilladher also said though industry consumption demand remained weak on increasing gold prices and financing issues, it expects good performance led by market share gain from unorganised players and traction form product activations.
"We expect Titan to continue the pace of its store openings."
At the operating level also, the performance is expected to be strong.
Kotak expects EBITDA margins to expand 200 bps YoY to 13.6 percent with strong margin improvement likely for watches and some increase in jewellery margins as well.
"We factor in EBITDA growth of 23.5 percent YoY for the quarter, with underlying margin expansion of 70bp YoY," Motilal Oswal said while Prabhudas Lilladher expects EBITDA growth of 20.5 percent YoY.
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