Titan's adex rise 22% YoY to Rs 250 crore in Q2 FY2025

New Delhi: The jewellery and watchmaker Titan reported a 22% rise in ad expenditure to Rs 250 crore in Q2 FY2025, compared to Rs 205 crore in the same quarter of the previous fiscal year.

Quarter-on-quarter, the company's ad spending increased by 24%. Its adex was Rs 202 in the Q1. 

In the first half of FY2025, Titan allocated Rs 452 crore to advertising, up by 9.7% from Rs 412 crore in the same period last fiscal year.

In total, the company spent Rs 829 crore on advertising in FY2024.

Titan reported a 23% decline in its consolidated net profit to Rs 704 crore for the second quarter ended on September 2024.

The company posted a net profit of Rs 916 crore in the July-September quarter a year ago, according to a regulatory filing from Titan.

However, its sales were up 25.82% to Rs 13,473 crore during the quarter under review. It was Rs 10,708 crore for the corresponding quarter.

Total expenses of Titan increased 20.23% to Rs 13,709 crore in the June quarter.

Titan's total income in the September quarter rose 15.83% to Rs 14,656 crore.

During the quarter, Titan's jewellery business increased 15.25% to Rs 12,771 crore. In the jewellery business, Titan's India business grew by 25% triggered by the "gold rush" after a reduction in customs duty (CD).

"The customs duty reduction saw a revival in consumer interest as gold prices cooled off temporarily. The ensuing gold rush lasted well into mid-September. Buyer growth was healthy accompanied by an increase in average selling prices, both exhibiting double-digit growths," it said.

During the quarter, in India, Tanishq opened 11 new stores, Mia added 12 and Zoya added 1 store, respectively.

Similarly, revenue from Watches & Wearables was up 19.41% to Rs 1,304 crore.

"Analog segment recorded a strong 26% revenue growth over Q2 FY24, led by Titan brand clocking 32% growth in the same period. Consumer preferences for premium brands were clearly visible with Helios channel (international brand sales) clocking a healthy retail growth of 43% over Q2 FY24," it said.

Its 'Wearables' segment saw a 13% drop in its revenue compared to Q2 FY24, primarily due to a reduction in average selling prices.

The business added 34 stores in Q2 FY'25, comprising 18 new stores in Titan World, 14 in Helios and 2 in Fastrack respectively.

Its Eyecare segment revenue was up 6.87% at Rs 202 crore.

"Frames and Lenses saw healthy growth in volumes. Sunglasses recorded a volume decline due to seasonality. International brand sales recorded a strong growth of 53% over Q2FY24," said Titan adding the division added 3 new stores of Titan Eye+.

Revenue from other segments, which includes its emerging business as Fragrance, wallets, Indian Dress Wear (Taneria) etc was at Rs 301 crore, up 38.07 per cent in the September quarter.

The segment has emerging Businesses such as Taneria, Indian Dress Wear, Fragrances and Fashion Accessories.

"Taneira's sales grew 12 per cent compared to Q2FY24 mainly driven by growth from new stores. The brand opened 4 new stores during the quarter, taking the total store count to 81 stores covering 41 cities," it said.

Titan is a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO).