Titan Company part of the Tata Group has announced its financial results for the December quarter (Q3) of the current fiscal year. While the company’s revenue has grown profits have slightly declined. However Titan remains optimistic about ending the fiscal year with better profits compared to last year. Titan known for its watches jewelry and lifestyle products was one of the late Ratan Tata’s favorite companies within the Tata Group. Titans Q3 Performance For the December quarter Titan’s profit stood at Rs 1047 crore a slight 0.6% decrease compared to the same period last year. However the company’s revenue surged 25% to Rs 17723 crore. Earnings Before Interest and Taxes (EBIT) increased by 5% to Rs 1627 crore although EBIT margins were slightly lower. Impact Of Gold On Profits The company’s profit before tax was around Rs 1396 crore consistent with the previous year. This stagnation was attributed to a reduction in import duties on gold. The government’s decision to lower gold taxes led to minor losses on previously stocked gold. Titan’s jewelry segment however recorded impressive revenue of Rs 14697 crore marking a 26% growth compared to the previous year. Titan’s Stock Performance Titans stock performance has been moderate. On Tuesday the shares showed a minor uptick of 0.22% closing at Rs 3588. Over the past six months Titan’s shares have risen by 6.28% while the annual growth has been a modest 1%. However over five years the stock has delivered a remarkable return of over 180%. Titan’s Journey From Watches To Lifestyle Products Titan started as a watch-making company and gradually expanded into the lifestyle sector. Today it sells watches jewelry (Tanishq) eyewear (EyePlus) perfumes and more. Tanishq Titan’s flagship jewelry brand was launched in 1994. Tanishq Brands Journey Initially Tanishq faced significant challenges and was considered unsuccessful. Several advisors suggested shutting down the brand but Ratan Tata decided to persevere. His determination transformed Tanishq into a profitable venture. In the early days Tanishq offered 18-carat gold jewelry instead of the more traditional 22-carat. The assumption was that lower prices would attract customers but this strategy failed. By 2001 Titan had incurred a cumulative loss of Rs 150 crore over five years and its share price had dropped from Rs 4 to below Rs 2. Building Trust With Customers In 2002 Titan analyzed the issues with Tanishq’s performance and sought assistance from McKinsey. The findings revealed a lack of customer trust in Tanishqs jewelry. Acting on these insights Ratan Tata instructed the company to switch from 18-carat to 22-carat gold for all products. To further enhance credibility Titan introduced Karatmeters in its stores devices imported from Germany that allowed customers to test the purity of gold. This innovation proved to be a game-changer rebuilding trust and attracting customers to Tanishq. After overcoming initial challenges Tanishq has never looked back. Today Titan is one of the top-performing companies in the Tata Group showcasing how determination and strategic decisions can transform a struggling business into a market leader. (With inputs from PTI)