Tata Investment Corporation (501301) Q4 05/06 earnings summary

Executive summary

• FY06 was described as an exceptionally strong year: profit after tax reached Rs.163.14 crore, up 45% YoY, supported by record realized capital gains and higher dividend income.

• Total income rose 43% to Rs.170.88 crore; quoted portfolio market value increased ~70% to Rs.2,133 crore at 31 March 2006.

Financial highlights

• PBT increased to Rs.164.59 crore from Rs.113.90 crore; PAT was Rs.163.14 crore versus Rs.112.38 crore.

• Total expenditure was Rs.6.29 crore, including donations of Rs.1.19 crore, versus Rs.5.29 crore and donations of Rs.1.34 crore a year earlier.

• Dividend income was Rs.45.09 crore, interest income net of interest expense was Rs.1.70 crore, and net profit on investment sales was Rs.123.03 crore.

• Investment portfolio book value rose to Rs.624.62 crore from Rs.516.53 crore; gross portfolio value, using market values for quoted holdings, reached Rs.2,438.07 crore.

Outlook and guidance

• FY07 fundamentals and corporate growth were expected to remain favorable, with infrastructure, construction and real estate seen as potential growth leaders.

• Market direction was difficult to predict after a sharp correction; management aimed for satisfactory results but cautioned that FY06 was exceptional.

• MAT treatment of long-term capital gains was expected to increase tax liability from FY07.