Titan Company Ltd is expected to report year-on-year growth of 50 percent in its standalone profit after tax (PAT) at Rs 737 crore when it declares its results for the March quarter today.

The jewellery and watchmaker’s revenue is seen growing 25 percent year on year, as indicated in the operational update, to Rs 9,095 crore. A poll of brokerages has pegged EBITDA margin at 11.6 percent improving from 10.7 percent in the year-ago period.

“The base quarter’s margin was partly impacted by an ex-gratia payout to employees,” noted analysts at Kotak Institutional Equities.

In the Q4 business update, Titan informed investors that it had added 2,710 stores in its retail network (including CaratLane) in the three-month period.

The maximum growth was recorded in its ’emerging businesses’ category, where sales shot up 84 percent YoY. This includes fragrance and fashion accessories, and Indian dress wear sold under the ‘Taneira’ brand.

Meanwhile, the watches and wearables segment registered a 41 percent growth YoY while the jewellery business grew 23 percent on-year.

So, the key factor to watch out for will be how demand panned out in March when gold prices scaled a new high of Rs 60,000.

“We gather that the quarter started on a strong note but demand moderated a bit in the month of March (high base + perhaps, some impact of sharp 8-10 percent increase in gold price),” said analysts at Kotak.

However, that impact may be offset by the benefit of a shift in some wedding dates to Q4 FY23 from Q3, as per analysts at Nuvama Institutional Equities.

The Street is pegging jewellery EBIT margin at 12 percent, supported by higher studded sales and operating leverage. EBIT margin for watches is seen at 11.2 percent and for eyewear at 17 percent.

Key monitorables: Management commentary on entry-level and low price band demand, outlook on international business expansion and competitive intensity.

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