Tata Investment Corporation (501301) Q4 04/05 earnings summary

Executive summary

• FY2004-05 was a record year: profit after tax reached Rs.112.38 crore, up 40% YoY, supported largely by higher realised capital gains from investment sales.

• Proposed dividend rose to Rs.12 per share (120%), from 101%; dividend including tax represented ~28% of PAT.

Financial highlights

• Total income was Rs.119.18 crore, up 32% YoY; it included a Rs.3.49 crore net write-back of investment diminution provisions.

• PBT increased to Rs.113.90 crore from Rs.85.50 crore; PAT rose to Rs.112.38 crore from Rs.80.56 crore.

• Net profit on investment sales was Rs.79.15 crore, versus Rs.44.19 crore; dividend income eased to Rs.36.16 crore from Rs.39.03 crore.

• Total expenditure, including donations, was Rs.5.29 crore versus Rs.4.87 crore; donations were Rs.1.34 crore versus Rs.1.08 crore.

Outlook and guidance

• From 31 March to 31 May 2005, portfolio value increased from Rs.1,490 crore to ~Rs.1,590 crore; management expected corporate performance to remain satisfactory, while noting uncertainty in market direction.

• Improving dividend income was a key management objective after portfolio sales contributed to a marginal decline in dividend receipts.