Timex Group India (500414) Q4 96/97 earnings summary

Executive summary

• FY1996-97 total income was Rs. 8,560.28 lakh; profit after tax fell to Rs. 136.50 lakh from Rs. 621.02 lakh, and no dividend was recommended.

• Sluggish consumer demand contributed to a 13% decline in sales volume and turnover; market share in the organised quartz-watch sector was 23%.

Financial highlights

• Sales revenue was Rs. 8,354.55 lakh versus Rs. 9,675.89 lakh; total income was Rs. 8,560.28 lakh versus Rs. 9,786.89 lakh.

• Profit before tax was Rs. 156.72 lakh versus Rs. 621.02 lakh; profit after tax was Rs. 136.50 lakh versus Rs. 621.02 lakh.

• Operating expenses were Rs. 7,099.50 lakh, depreciation Rs. 386.59 lakh and net interest Rs. 917.47 lakh.

Outlook and guidance

• Consumer-durable demand was expected to revive in FY1997-98; the current product plan was expected to support higher sales volume and profit.

• Cost reduction was a key profitability priority; recently installed metal-case capacity was expected to lower operating costs in coming years.

• Plans called for 13 additional exclusive showrooms nationwide over the next two years.