From the rising prices of food items to the high prices of gold and silver, the rising inflation on everything has troubled the common man. Due to this, not only is his pocket savings decreasing, but it is also becoming difficult for him to meet his expenses. Even big business groups like Tata have had to bear its impact. The profit of one of his companies has decreased by 23 percent.
Tata Group company Titan does jewelery business under the brand name Tanishq. At the same time, it also works in premium accessories business like watches, glasses, perfumes and leather products. Its consolidated net profit fell by 23 percent in the July-September quarter.
Titan’s profit remained this much
Titan’s consolidated net profit declined by 23 percent to Rs 704 crore in the second quarter (July-September) of the current financial year 2024-25. Whereas in the same quarter of the previous financial year, the company’s profit was Rs 916 crore.
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During this period, the company’s sales have increased by 25.82 percent to Rs 13,473 crore, which was Rs 10,708 crore in the same quarter of last year. The total income of the company increased by 15.83 percent to Rs 14,656 crore during this period. The main reason for the decline in the company’s profits is the increase in its expenses, which have increased by 20.23 percent to Rs 13,709 crore in July-September this year.
Jewelery business also witnessed a boom
The government had reduced the custom duty on gold in July. Titan has benefited from this in its Tanishq business. Its total jewelery business has increased by 15.25 percent to Rs 12,771 crore. During this quarter, the company has opened 11 new stores of Tanishq, 12 of Mia and one store of Zoya across the country.
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Similarly, the income of the company’s watches and wearables business has also been tremendous. Its revenue increased by 19.41 percent to Rs 1,304 crore. In this, sales of its Titan and Helios brands have been better. There has been a big decline in its wearables business.
Decline in wearables business
The revenue of the company’s wearables business has fallen by 13 percent during this period. The reason for this is the decline in the average selling price of the company’s products and decrease in store visits. One reason for the increase in company’s expenses is inflation in the country. The decline in sales in some segments is due to people reducing their spending due to inflation. Titan’s business falls in such a segment, when people have extra money in their hands, they spend it on it. Due to inflation, the purchasing power of people decreases.
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