Tata Investment Corporation (501301) Q4 02/03 earnings summary

Executive summary

• FY03 income and profit increased despite a falling equity market and weaker dividend income; portfolio pruning and exposure to growth and dividend-yield investments continued.

• Investment holdings covered 267 companies at Mar. 2003, down from 322 a year earlier; portfolio book value rose to Rs316.93 crore from Rs300.03 crore.

Financial highlights

• Total income was Rs52.80 crore vs Rs50.33 crore; PBT rose ~10% to Rs49.39 crore from Rs45.12 crore, and PAT increased to Rs45.82 crore from Rs43.97 crore.

• Total expenditure fell to Rs3.41 crore from Rs5.21 crore, largely because long-term investment diminution provisions were charged directly to Securities Premium.

• Net tax provision was Rs3.65 crore vs Rs1.83 crore; FY03 included Rs2.06 crore of earlier-year tax refunds/excess provisions written back.

• Interim dividend was Rs6/share, or 60%; no final dividend was recommended.

Outlook and guidance

• Portfolio restructuring was set to continue, with divestment of non-performing holdings and investment in growth sectors and good dividend-yield stocks.

• Budget 2003-04 exemptions for dividend income and partial abolition of long-term capital gains tax were expected to reduce future tax liability.