Tata Investment Corporation (501301) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 total income rose to Rs.90.37 crore from Rs.52.80 crore; profit after tax reached Rs.80.56 crore, supported by higher dividends and realized gains on investments.

• Portfolio value, with quoted investments at market value and unquoted holdings at book value net of provision, rose to Rs.1,184.76 crore from Rs.545.11 crore.

Financial highlights

• Total income was Rs.90.37 crore; PBT Rs.85.50 crore vs Rs.49.39 crore, and PAT Rs.80.56 crore vs Rs.45.82 crore YoY.

• Total income included a Rs.6.26 crore write-back of investment diminution provision; excluding this item, income was still boosted by higher dividend receipts and investment-sale gains.

• Net profit on investment sales was Rs.44 crore, including nearly Rs.43 crore from long-term investments; the long-term disposals had book value of Rs.37 crore, including Rs.14 crore of loss-making holdings.

• Total expenditure was Rs.4.87 crore vs Rs.3.41 crore, mainly reflecting a large donation during the year.

Outlook and guidance

• Dividend income was expected to remain satisfactory; gains from investment sales depended on opportunities to realize profits amid uncertain markets.

• Management aimed for satisfactory performance in FY 2004-05 while noting that market direction and monsoon behavior remained uncertain.

• Market participants were expected to wait for the new government’s policies and their implementation before responding.