Titan: Unaudited financial results for the period ended June 2003

Unaudited financial results for the period ended June 2003

(Rs. in crore)
Particulars	Quarter ended 30-6-2003 (Unaudited)	Quarter ended 30-6-2002 (Unaudited)	Year ended 31-3-2003 (Audited)
Net sales / Income from operations	146.77	113.48	797.90
Other income	0.56	0.25	10.40

Total income	147.33	113.73	808.30
Expenditure
Decrease / (increase) in stock in trade	(13.95)	(28.62)	(5.04)
Consumption of raw materials	89.86	77.88	473.23
Excise duty	15.29	14.03	60.53
Staff cost	18.38	21.69	71.57
VRS cost	2.40	-	5.18
Advertising	13.58	9.48	47.44
Provision for diminution in value of investments	-	-	10.00
Other expenditure	17.58	14.90	65.12

Total expenditure	143.14	109.36	728.03
Interest	10.20	10.53	41.35
Depreciation	5.47	5.67	21.14
Amortisation	0.99	2.00	8.00

Profit / (Loss) before taxes	(12.47)	(13.83)	9.78
Income taxes - Current tax	-	-	4.87
- Deferred tax	(4.96)	(3.81)	(2.99)
Profit / (Loss) after taxes for the year	(7.51)	(10.02)	7.90
Less: Income tax of earlier years	-	-	1.69
Net Profit	(7.51)	(10.02)	6.21

Paid-up equity share capital (face value: Rs.10 per share)	42.28	42.28	42.28
Paid-up preference share capital	40.00	40.00	40.00
Reserves excluding revaluation reserves	-	-	80.19
Basic and diluted earnings per equity share (Rupees)	(2.01)	(2.59)	0.60
Aggregate of Non-Promoter shareholding
- Number of shares	19,078,141	19,078,141	19,078,141
- Percentage of shareholding	45.1%	45.1%	45.1%
Segment Results
Net sales / Income from segments
Watches & Clocks	90.97	75.44	453.89
Jewellery	56.06	38.27	345.13

Total	147.03	113.71	799.02
Profit / (Loss) from segments before interest and taxes
Watches & Clocks	(3.00)	(1.71)	27.88
Jewellery	0.32	(1.59)	13.72

Total	(2.68)	(3.30)	41.60
Less : Interest attributable to segments	9.40	10.26	40.13
Profit / (loss) from segments before taxes	(12.08)	(13.56)	1.47
Unallocable expenditure net of unallocable income	(0.39)	(0.27)	8.31
Profit / (loss) before taxes	(12.47)	(13.83)	9.78
Capital Employed in segments
Watches & Clocks	482.52	488.01	491.74
Jewellery	98.44	124.18	124.33
Others (Corporate)	55.36	48.96	55.04

Total	636.32	661.15	671.11

Notes:

Both watch and jewellery sales recorded encouraging growth over the same period last year in spite of the partial 'lock-out at the Company's factories at Hosur which was lifted on 21st April 2003.

Historically, the first quarter results are not an indication of full year performance. Sales and profit are skewed to the 'subsequent quarters when trade purchases peak to meet consumer demand in the festival and marriage seasons 'that follow.

'The cost of the Company's voluntary retirement scheme (VRS) for its employees is being amortised over a period of sixty months. Amortisation costs include one-time consultancy charges for long-term operating and strategic initiatives.

'The figures of the previous period have been regrouped/recast, where necessary..

'There were no investor complaints pending at the beginning of the quarter, 8,076 queries / complaints were received 'and disposed off during the quarter and there were no queries / complaints lying unresolved at the end of the quarter.

'The Auditors have carried out a limited review of the financial results for the quarter ended on 30th June 2003, as 'required by the Listing Agreement.

The above statement of financial results was taken on record by the Board of Directors at their meeting held on 21st July 2003.

Bangalore
Dated: 23rd July 2003

For & on behalf of the Board of Directors
Bhaskar Bhat
Managing Director

Titan Industries Limited