Titan Company (TITAN) Q4 89/90 earnings summary

Executive summary

• FY ended 31 Mar 1990 delivered Rs. 7461.73 lakh in total income and Rs. 433.27 lakh in profit after tax; prior figures cover nine months and are not directly comparable.

• Operations expanded through higher watch output, new manufacturing capacity, product launches and first significant exports of watch movements.

Financial highlights

• Sales were Rs. 7405.56 lakh and other income Rs. 56.17 lakh; operating and other expenses Rs. 5901.33 lakh, depreciation Rs. 398.28 lakh and interest Rs. 650.85 lakh.

• Profit before tax was Rs. 511.27 lakh, tax provision Rs. 78 lakh and profit after tax Rs. 433.27 lakh, versus Rs. 127.72 lakh and Rs. 106.72 lakh, respectively, in the prior nine-month period.

• A maiden 15% dividend was recommended, subject to shareholder approval; proposed dividend provision was Rs. 360 lakh.

Outlook and guidance

• Current-year production was expected to exceed 2 million watches and approach 3 million movements; management aimed to maintain and strengthen technical and market leadership.

• Exclusive showrooms were planned to increase from 21 to about 50 within a year.

• Export emphasis was shifting toward complete watches; government Cash Compensatory Support was identified as a potential enabler for stronger international market entry.