Titan Company (TITAN) Q4 92/93 earnings summary

Executive summary

• FY 1992-93 sales turnover rose 23% despite consumer-durable recession and cost pressure; profit before tax eased to Rs. 1,087.21 lakh from Rs. 1,110.20 lakh.

• Strategic expansion underway in jewellery, premium watches and international markets, supported by a Rs. 225 crore capital investment plan.

Financial highlights

• Sales were Rs. 19,121.45 lakh versus Rs. 15,500.95 lakh; other income was Rs. 159.85 lakh versus Rs. 49.38 lakh.

• Operating and other expenses were Rs. 15,625.14 lakh; depreciation Rs. 722.76 lakh; interest Rs. 1,846.19 lakh; profit after tax Rs. 1,087.21 lakh.

• Proposed dividend increased from 20% to 22%, or Rs. 2.20 per share, with pro-rata rates for shares allotted during the year.

Outlook and guidance

• FY 1993-94 sales target: 3 million watches; income, including jewellery and jewellery watches, expected to exceed Rs. 300 crore.

• Watch production target rises to 3 million in 1993-94 and 3.5 million in 1994-95; net foreign-exchange earner target set for 1994-95.

• Export priorities include consolidating the Middle East presence and entering the UK; domestic strategy focuses on higher-end products.