Titan Industries Q4 net rises 153 per cent

07 June 2006

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.