Titan Company (TITAN) Q4 91/92 earnings summary

Executive summary

• FY1991-92 income rose to Rs.155.50 crore from Rs.106.78 crore; net profit increased to Rs.11.10 crore from Rs.9.10 crore despite higher interest, rupee devaluation and adverse market conditions.

• Quartz analog market share in India was close to 60%; watch sales grew 22% by units and 45% by revenue.

Financial highlights

• Sales were Rs.155.01 crore versus Rs.106.26 crore; total income was Rs.155.50 crore versus Rs.106.78 crore.

• Gross profit was Rs.35.56 crore versus Rs.27.48 crore; interest expense rose to Rs.17.72 crore from Rs.11.82 crore.

• Profit before tax and net profit were both Rs.11.10 crore, versus Rs.9.10 crore in FY1990-91.

• Proposed dividend increased to 20%; proposed dividend appropriation was Rs.5.37 crore versus Rs.4.83 crore.

Outlook and guidance

• FY1992-93 watch sales expected to exceed 2.5 million units versus 2.25 million in FY1991-92; income expected to exceed Rs.200 crore.

• Showroom network planned to expand from 53 to 70 locations during the current year, including growth in company-owned sites from 4 to 10.

• Middle East sales expected to more than double; Titan products were also expected to launch in other neighboring countries during the year.

• Capacity planned to rise to 3.5 million watches, mainly through productivity gains and balancing equipment.