Tata Investment Corporation (501301) Q4 00/01 earnings summary

Executive summary

• FY ended 31 Mar 2001: total income Rs 44.81 crore, PBT Rs 40.83 crore and PAT Rs 41.13 crore; PAT rose from Rs 37.21 crore, aided by lower tax provision and prior-year tax write-backs.

• In a difficult equity market, earnings increased and a 60% dividend (Rs 6 per ordinary share) was recommended.

Financial highlights

• Total income was Rs 44.81 crore vs Rs 46.73 crore YoY; total expenditure fell to Rs 3.98 crore from Rs 7.11 crore, mainly due to lower investment-diminution provision.

• PBT was Rs 40.83 crore vs Rs 39.62 crore; PAT was Rs 41.13 crore vs Rs 37.21 crore, including Rs 1.85 crore in net tax refunds/write-backs of earlier provisions.

• Net profit on sale of investments was Rs 16.42 crore vs Rs 18.60 crore; dividends were Rs 26.78 crore vs Rs 26.79 crore.

• EPS was Rs 25.06 vs Rs 20.65; reported NAV was Rs 257 per share at 31 Mar 2001.

Outlook and guidance

• Board planned to continue reducing the portfolio, chiefly by divesting loss-making and small investments, while selectively adding new scrips.

• Proposed rights issue of 32,82,013 zero-coupon convertible debentures at Rs 100 each, intended to raise Rs 32.82 crore for long-term resources.

• Debentures structured for staged conversion of Rs 40 portions into shares on 31 Mar 2002 and 31 Mar 2003, with the remaining Rs 20 repaid at Rs 25 on 31 Mar 2003.