BANGALORE, June 23: Provision for minimum alternate tax (MAT) has brought down Titan Industries' profit after tax (PAT) from Rs 27.57 crore last year to Rs 24.22 crore this fiscal. The company has made full provision for minimum alternate tax amounting to Rs 3.58 crore which will be available to meet future income tax liabilities of the company over the next five years.

Besides, the interest imbalances having spilled into the current year as well, have kept the rise in profit before tax at a marginal level. The higher outgo of interest at Rs 56.40 crore this year compared to last year's Rs 34.22 crore has allowed profit befor tax to record only a marginal rise from Rs 27.57 crore in 1996 to Rs 27.80 crore this year.

The company has decided to maintain the dividend at 33 per cent. Sales income has risen from Rs 350.72 crore for the year ending March 31, 1996, to Rs 408.52 crore this year.

While the other income has recorded a significant rise from Rs 2.95 crore to Rs 12.93 crore, it includes a surplus of Rs 10.13 crore from the sale of 45,00,000 shares in Timex Watches to an associate investment company.

Blaming the economic recession, high interests rates and the new wage settlement for an unimpressive performance, the company said that several new projects and ventures were at an early stage of ramping up as additional reasons for the same. However, an upward swing during the first quarter of 1997-98, successful launch of low priced watches range, introduction of sports watches and introduction of 22-carat Tanishq jewellery promise the company a silver lining.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.