Titan Industries registered an improvement in its performance in Q4 when compared to the first 9 months of FY2003. The company recovered from a loss of Rs 2.42 crore (pre-taxes and provisions) during the preceding 9 months ended December 31, 2002 and turned around in the fourth quarter ending March 31, 2003, posting a pre-tax profit of Rs 27.38 crore, a growth of 48 per cent over Q4 of FY2002. The company’s performance was encouraging in this quarter, despite a lockout at the company's Hosur plants, the impact of which was felt for over 45 days of the financial year.
The company’s turnover increased from Rs 724.78 crore last year to Rs 797.90 crore - achieving a growth of 10 per cent. Profit before exceptional items increased by 34 per cent from Rs 18.56 crore last year to Rs 24.96 crore this year.
Despite the difficult conditions experienced by the watch industry, the turnover in the time products division declined marginally by 1 per cent this year to Rs 453.89 crore, as against Rs 458.74 crore last year. The brands of the company continued to remain strong and initiatives are being implemented to increase market share.
The jewellery division’s performance continued to be impressive with a 29 per cent increase in turnover to Rs 345.13 crore, and the profit before interest of the division increased from Rs 12.84 crore last year to Rs 14.40 crore this year, an increase of 12 per cent.
The company’s profit after taxes for the year, at Rs 7.90 crore, was lower than the previous year's by 39 per cent. This reduction in profit takes into account a VRS cost of Rs.5.18 crore, a provision for diminution in the value of investments at Rs.10 crore and a current and a deferred tax component of Rs.1.88 crore.
In view of the reduction in net profit, the directors have recommended a dividend of 10 per cent (15 per cent last year).