Titan Company (TITAN) Q4 94/95 earnings summary

Executive summary

• FY ended Mar. 31, 1995: sales income rose 24% and profit increased over 30%, driven by indigenisation savings, export incentives, operating efficiencies, scale and higher volumes.

• Sales income missed target after Indian jewellery and jewellery-watch launches and the European collection launch were postponed.

Financial highlights

• Total income was Rs 28,393.55 lakh vs Rs 22,880.78 lakh; sales were Rs 28,034.24 lakh vs Rs 22,622.69 lakh.

• Profit after taxes was Rs 2,509.33 lakh vs Rs 1,908.88 lakh; the Directors cited profit growth of over 30%.

• Other income increased to Rs 359.31 lakh from Rs 258.09 lakh, including Rs 2.52 crore earned from Timex-related services and Aqura royalty, reported within Other Income.

• Equity dividend recommended at 30%, up from 25%; preference dividend recommended at 11% pro rata, equivalent to 3 paise per Rs 100 share.

Outlook and guidance

• FY 1995-96 sales income target is close to Rs 500 crore; export target exceeds Rs 75 crore, with expectations of becoming a significant net foreign-exchange earner.

• Two-year capital expenditure budget is Rs 150 crore, including Rs 100 crore in FY 1995-96; planned capacity projects include watches, table clocks and bracelets.

• Planned jewellery output for the year is 1.2-1.5 lakh pieces; jewellery-plant capacity expansion will follow market demand.

• Watch manufacturing capacity is planned to rise to 5 million pieces annually; table-clock facilities are planned for 1.5 million pieces per year.