Inflation has also taken the toll on Tata! This company's profit has gone down by 23%

Tata Jewellery Company: From rising prices of food items to high prices of gold and silver, inflation has increased the problems of the common man. This situation has not only taken a toll on the pockets of the common man but has also affected big business groups. Its effect is also clearly visible in the profits of Titan, the flagship company of the Tata Group. Titan's consolidated net profit has declined by 23 percent in the second quarter of this year.

Titan's profit falls to Rs 704 crore

Titan's consolidated net profit has declined by 23 percent in the second quarter (July-September) of the current financial year 2024-25. This profit has come down to Rs 704 crore, while it was Rs 916 crore in the same period last year. On the other hand, the company's sales have increased by 25.82 percent, from Rs 10,708 crore in the quarter last year to Rs 13,473 crore this year. Despite this, the main reason for the decline in the company's profit is its rising expenses. Titan's total expenses increased by 20.23 percent, taking it to Rs 13,709 crore.

Increase in jewelry business but decline in wearables

Titan company works in the jewelry sector under the Tanishq brand and its jewelry business grew by 15.25 percent to Rs 12,771 crore this quarter. The company's Tanishq business benefited from the reduction in custom duty on gold in July. Apart from this, during this period, the company has also opened 11 new Tanishq stores, 12 Mia stores and one Zoya store across the country.

The company's watch and wearables business also saw a good increase in income, which increased by 19.41 percent to Rs 1,304 crore. Sales of Titan and Helios brands were better, but the wearables business declined by 13 percent. The reason for this is being attributed to the fall in the average selling price of the company's products and fewer store visits.

Inflation has a direct impact on expenses, Titan also suffered

The main reason for the increase in Titan's expenses is inflation. Inflation has affected the spending capacity of people, which has led to a decline in the demand for many premium products. Titan's business falls in those segments where people spend when they have extra money, such as jewelry, watches, and premium accessories. But due to rising inflation, the spending capacity of people is decreasing, due to which the profits of big companies like Titan are also declining.

Result: Big industries are also affected along with common people by the effect of inflation

Inflation has troubled the common people as well as big businessmen equally at this time. While on the one hand its burden is increasing on the pockets of common people, on the other hand, big groups like Tata have also not remained untouched by it. The fall in Titan's profits is proof that inflation is also affecting businesses. Unless inflation is controlled, the challenges faced by the related industries and the common man do not seem to be reducing.