Titan Company (TITAN) Q4 88/89 earnings summary

Executive summary

• Nine-month period ended 31 Mar 1989 followed a shift to an April–March accounting year; performance was described as very satisfactory, with total income of Rs. 2,804.10 lakhs.

• Sold 513,106 watches, versus 219,013 in the corresponding nine months and 344,218 in the full prior year.

Financial highlights

• Sales were Rs. 2,758.94 lakhs and total income Rs. 2,804.10 lakhs for the nine months; prior-year total income was Rs. 1,890.43 lakhs for 12 months.

• Gross profit was Rs. 694.68 lakhs; profit before tax Rs. 127.72 lakhs; tax provision Rs. 21.00 lakhs; profit after tax Rs. 106.72 lakhs.

• Profit carried forward was Rs. 127.79 lakhs, including Rs. 21.07 lakhs brought forward.

• No dividend was recommended because profit was considered insufficient.

Outlook and guidance

• Current-year production and sales were expected to be substantially higher.

• Collaborator arrangement targeted exports of up to 2.5 million watch movements over three years; 44,000 movements had been exported, with efforts underway to export complete watches.

• A new range of watches for younger buyers was planned for later in the year; commercial production at the watch-case project was also expected to start later in the year.