Timex records Q2 cash profit at Rs 74 lakh

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Signalling a turnaround, Timex Watches India today said it has posted a cash profit of Rs 74 lakh during the second quarter of this fiscal. Net revenue grew by 26 per cent at Rs 18.9 crore during July-September 2004 over Rs 15.05 crore during the year-ago period, Timex India managing director Kapil Kapoor said after the company's board meeting.

"Our performance has improved considerably due to increasing sales of the volume-driven category of our watches and reduced manufacturing overhead expenses, a result of a flexible supply chain," he said.

Timex Watches India, which is 83.5 per cent owned by Netherlands-based Timex Watches BV, cut its net loss to Rs 10 lakh during the quarter under review over a net loss of Rs 4.40 crore during July-September 2003.

As part of its capital restructuring strategy, Timex had reduced the paid-up value per equity share from Rs 10 to Rs 1 and paid-up value of preference share capital from Rs 100 per share to Rs 10 per share.

"On the back of our improved performance, we hope to beat the industry average and post 18 per cent topline growth next year," Kapoor said.