Titan Company (TITAN) Q4 86/87 earnings summary

Executive summary

• Commercial quartz-analogue watch production began in March 1987; the sales network covered all States and Union Territories, with ~150 models and more than 120,000 watches sold to date.

• The project remained under implementation, with component production advancing and plans being developed to reduce import dependence through in-house case and appearance-part manufacturing.

Financial highlights

• FY ended 30 June 1987 sales were Rs 243.10 lakh and other income Rs 45.43 lakh; total expenditure was Rs 293.57 lakh, resulting in a Rs 5.04 lakh loss.

• Profit before depreciation and interest was Rs 18.25 lakh; depreciation was Rs 15.28 lakh and interest Rs 8.01 lakh.

• Commercial operations began in March 1987, so no prior-year profit and loss account was available for comparison.

Outlook and guidance

• Component-manufacturing buildings and services were virtually complete; trial production of some components had begun, with project implementation progress described as satisfactory.

• Case and appearance-part manufacturing was estimated to cost Rs 30 crore, subject to government approvals; planned funding included retained issue proceeds, internal funds and borrowings.

• An application sought approval to manufacture 2 million digital and ana-digi watches with Casio; an MoU was signed in November 1986 and a feasibility report was in preparation.