Tata Investment Corporation (501301) Q4 97/98 earnings summary

Executive summary

• FY98 profit after tax rose to Rs. 20.06 crore from Rs. 19.82 crore, despite lower total income and profit before tax; results include Investa from 1 April 1997 and are not comparable with FY97.

• The portfolio’s book value was Rs. 170.84 crore after long-term investment diminution; quoted investments had a market value of Rs. 414.66 crore.

Financial highlights

• Total income was Rs. 27.16 crore versus Rs. 28.35 crore; profit before tax was Rs. 21.52 crore versus Rs. 24.33 crore.

• Profit after tax was Rs. 20.06 crore versus Rs. 19.82 crore; EPS was Rs. 16.14.

• Total expenditure increased to Rs. 5.64 crore from Rs. 4.02 crore, including Rs. 2.81 crore long-term investment diminution and Rs. 0.57 crore diminution in OTC stock.

• Directors recommended a dividend of Rs. 4.50 per ordinary share, equivalent to 45% of face value.

Outlook and guidance

• Compulsory market-making for listed OTCEI scrips ceased from 1 April 1998; related market-making losses were expected to cease from that date.

• Investment policy classifies holdings as long term, generally to be held for more than one year; efforts were being made to reduce the large number of investments.