Timex Group India (500414) Q4 01/02 earnings summary

Executive summary

• FY02 net loss narrowed to Rs. 2,511.77 lakh from Rs. 4,755.16 lakh; sales and service income remained below the prior year.

• A Rs. 3,700 lakh preferential equity infusion improved liquidity and reduced interest costs, but accumulated losses exceeded 50% of peak net worth, requiring a BIFR reference under SICA.

Financial highlights

• Net sales were Rs. 5,156.93 lakh versus Rs. 5,546.89 lakh; service income was Rs. 129.11 lakh versus Rs. 69.47 lakh.

• Total income was Rs. 5,433.02 lakh versus Rs. 5,904.38 lakh; total expenditure fell to Rs. 7,944.79 lakh from Rs. 10,659.54 lakh.

• Net loss and loss per share improved to Rs. 2,511.77 lakh and Rs. 3.39, respectively, from Rs. 4,755.16 lakh and Rs. 8.87.

• Materials cost fell to Rs. 3,216.42 lakh from Rs. 3,957.91 lakh; other expenses declined to Rs. 2,173.45 lakh from Rs. 2,847.61 lakh.

Outlook and guidance

• Plans included aggressive new-product launches, sustained media presence, growth in sales volume and market share, and continued cost reductions across price segments.

• Management expected product access through the parent’s range and growing organized retail to support market expansion and improved per-watch realization.