Titan Industries has reported fourth quarter and full year results which are in line with market expectations. Though operating expenses increased considerably, the company managed to improve its bottom line substantially through reduction in bad debts, interest and depreciation.

For the quarter ended 31 March 2006, net profits increased 153.47 per cent to Rs37.21 crore from Rs14.68 crore for the previous year quarter. Total revenues increased 35.37 per cent to Rs424.03 crore from Rs313.23 crore.

Operating profits declined 10 per cent during the quarter as operating margins as a percentage of sales declined to 12.7 per cent from 19.12 per cent for the previous year quarter.

Operating margins were impacted by a 54.27 per cent jump in material and manufacturing costs. Advertising expenses went up by 60.28 per cent during the quarter. Staff costs were higher by 11.91 per cent while other expenses increased by 24.19 per cent.

The company managed to improve its bottom line through an 80.31 per cent fall in provision for doubtful debts and assets. Interest costs declined by 22.28 per cent while depreciation charges declined by 11.51 per cent.

For the full year 2005-06, standalone net profits increased 195.07 per cent to Rs73.62 crore from Rs24.95 crore for the previous year. Total revenues for the year went up by 33.24 per cent to Rs1,442.61 crore from Rs1,082.68 crore.

Operating profits for the year increased 30.41 per cent while operating margins as a percentage of net sales declined marginally to 10.69 per cent from 10.93 per cent for the previous year.

Material and manufacturing costs for the year were higher by 37.39 per cent. Advertising expenses went up by 31.76 per cent while staff costs, including VRS expenses, declined by a per cent. Other expenses went up by 35.51 per cent.

Titan managed to bring down interest costs by 19.66 per cent during the year and depreciation charges declined by 12.62 per cent. Provision for bad debts declined 28.57 per cent, leading to a substantial improvement in bottom line.

Consolidated net profit of the company for the full year 2005-06 nearly tripled to Rs80.93 crore from Rs20.93 crore for the previous year. Consolidated revenues for the year increased 30.63 per cent to Rs1,445.52 crore from Rs1,106.54 crore.