Noel Tata to retire as Titan vice-chairman; Q2 profit more than doubles to Rs 2,393 cr

BENGALURU: Noel Tata will retire as vice-chairman and director of Titan on Nov 12 under Tata group governance guidelines, the company said on Thursday. He has been associated with the jewellery and watches company since August 2003.The announcement came as Titan reported a 114% year-on-year increase in consolidated net profit to Rs 2,393 crore for the September quarter, from Rs 1,120 crore a year earlier.Total income increased 13.8% to Rs 21,430 crore from Rs 18,837 crore. Excluding bullion and digital gold sales and an accounting credit, the company put income growth at 25% to Rs 20,533 crore.The profit included a Rs 671 crore accounting gain linked to Titan’s acquisition of Damas. Titan reduced its estimated liability for buying the remaining 33% stake in the jeweller after geopolitical disruptions in the Middle East hurt Damas’ business. Excluding this credit, net profit rose 54% to Rs 1,722 crore.Profit also benefited from Rs 536 crore in gains arising from an increase in customs duty on gold. Excluding both gains, profit before tax grew 18% to Rs 1,793 crore.Jewellery income, excluding bullion and digital gold sales, rose 24% to Rs 17,495 crore. In India, Tanishq, Mia and Zoya together grew 20% to Rs 14,935 crore, while CaratLane’s income increased 31% to Rs 1,408 crore.Titan said jewellery growth was driven by higher average bills and demand for studded jewellery, which includes pieces set with diamonds or other stones. It added 42 jewellery stores, net of closures, in India during the quarter and opened a Tanishq outlet in Los Angeles.The watches business grew 27% to Rs 1,881 crore, while eyecare income increased 28% to Rs 281 crore. Managing director Ajoy Chawla said “consumer demand held up well for most of the period”, even as the festive calendar shifted to the December quarter.Titan’s board also approved raising up to Rs 2,500 crore through privately placed, unsecured non-convertible debentures, a form of debt.You use AI every day. Now get your AI Quotient. Take the AIQ test.