Titan Company, a Tata Group- took care of provider and vendor of lifestyle objects, highlighted that the lower in customizeds obligation on gold had a considerable affect of Rs 290 crore all through the July-September quarter. “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,” Titan claimed in its Q2 outcome declaration.
Union Finance Minister Nirmala Sitharaman beneficial a discount in Customs obligation on gold from 15% to six% within the Union Budget 2024. When Customs obligation is diminished, enterprise with provide acquired at better obligation costs would possibly maintain losses due to the variation in between the worth of present provide and brand-new market worth.
How a lot tax obligation do I have to pay? Calculate presently
Titan Company Ltd reported a 25% lower in web income year-on-year, finishing Rs 705 crore for the 2nd quarter upright September 30, 2024. In distinction, the enterprise had truly uploaded an web income of Rs 940 crore in the exact same quarter of the earlier . EBITDA diminished by 16.4% to Rs 1,133 crore within the present quarter from Rs 1,355 crore within the earlier financial length, inflicting an EBITDA margin of 8.6% within the reporting quarter contrasted to 11.6% within the matching length of the earlier .
During the 2nd quarter of the 2025, the residential jewellery sector skilled a major rebirth, with income attending to Rs 10,568 crore, standing for a sturdy year-on-year growth of roughly 25%. This accomplishment adopted a slow-moving effectivity within the earlier quarter. The rise in style was largely sustained by a lower in custom-made obligations, which continued to be principally until mid-September As an consequence, purchaser growth noticed a considerable uptick of round 12%, include by a ten% increase in typical market worth contrasted to the earlier 12 months.
In the latest quarter, the gold sector, that features cash, skilled a 30% year-over-year growth, whereas the studded classification noticed a 12% increase. The sector’s like-to-like growth was 15% for the quarter, influenced by custom-made obligation decreases influencing shopper consciousness by Rs 290 crore. Adjusting for this, the EBIT obtained to Rs 1,222 crore with a margin of 11.4%. Tanishq included 11 retailers, Mia included 12, and Zoya included one all through the quarter.
CaratLane likewise had a stable quarter, with total earnings growing 27.9% year-over-year to Rs 829 crore. Revenue from the studded classification expanded by 41%, enhancing its share by roughly 7 portion point out 79% of total gross sales. New shopper procurement growth was pushed by activations in July and August 2024, with a 21% increase and a 30% improve in model identify searches. CaratLane’s EBIT obtained to Rs 58 crore, standing for a 7.0% margin. The model identify elevated by 11 brand-new retailers, bringing the full quantity to 286 all through 119 cities in India.
In the Watches & & Wearables sector, residential income skilled a robust 19% Year- over-Year growth, largely pushed by a considerable 26% increase within the analog views sector. The Titan model identify particularly attained a powerful 32% growth, credited to stable amount growth. Additionally, Sonata and Fastrack likewise reported wholesome and balanced features, with about 20% and 18% Year- over-Year growth, particularly.
During a gathering with CNBC TV18 in August, Ashok Sonthalia, CFO of Titan Company, identified that the enterprise expects a inventory lack of Rs 500-550 crore due to the present lower in Customs obligation on gold. Sonthalia cleared up that this affect is an consequence of providing provide that had better Customs obligations paid previously, which will definitely have an effect on the enterprise’s financial declarations sooner or later quarters.
Despite this impediment, Sonthalia stored in thoughts that the discount in gold charges has truly caused a lift in style for gold jewellery.
