(Reuters) -Indian jeweller and watchmaker Titan reported a largely flat third-quarter profit on Tuesday, but still topped estimates as customers looked past high gold prices to splurge on ornaments during the festive season.

Results: Titan's jewellery business grew by 26.62% in the December quarter despite a slight decline in net profit to Rs 1,047 crore. The company also saw strong performance in its watches and eyecare segments.

Titan, a Tata Group company, reported a 4.9% year-on-year decline in standalone net profit for Q3 of fiscal 2024-25, totaling ₹990 crore, down from ₹1,040 crore in the previous year.

According to a Moneycontrol poll, Titan Company is likely to report a 27.9 percent revenue growth at Rs 16,688 crore.

Titan Company maintained that profitability was impacted by the change in custom duty on gold. CK Venkataraman, Managing Director, Titan Company, said, “The custom duty related losses on the inventory (held at the time of the duty change) have been fully realized in this quarter and hence the profitability is lower to that extent.

Titan’s revenue from operations in Q3FY25 is estimated to grow 25% YoY, while its net profit is expected to remain flat due to the exceptional item.

Titan Company’s net profit in the third quarter of this financial year (FY25) was largely flat due to a reduction in customs duty. Its revenue from operations grew by 25.2 per cent to Rs 17,740 crore in the quarter compared to last year, while its net profit stood at Rs 1,047 crore.

Indian jeweller Titan will likely have to pay higher interest rates to lease gold from bullion banks, which have increased shipments to the U.S. in search of bigger profits, tightening supply in other regions,