Mumbai: Low consumer confidence and tough economic environment has impa
cted dairy and foods company, Nestle India Ltd as it reported net profit growth of 8% for the first quarter ending March 31 of Rs 275.7 crore, missing Bloomberg estimates of Rs 299 crore of 20 analysts. In the corresponding quarter a year ago net profit was Rs 255.7 crore. Net sales for the quarter at Rs 2047.5 crore increased by 13.1% over the same period of 2011.
“As anticipated, 2012 is already confirming to be a challenging year. Low consumer confidence and the economic environment is creating pressure across sectors. We are maintaining a cautious tone, and in recent months and especially in this quarter have focused even more on optimising our product portfolio and in further strengthening the innovation pipeline. This focus has enabled us to maintain a healthy top and bottom line in the Quarter,” said Antonio Helio Waszyk, chairman and managing director of Nestlé India.
The Nestle scrip closed at Rs 4,938.10 up by 0.92% while the Bombay Stock Exchange marginally declined by 0.33% to close at 17,151.29.
—Sapna Agarwal
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Raymond net profit comes down by 89%
Mumbai: A slowdown in the Indian economy along with high inflation has taken a toll on textiles and apparel company, Raymond Ltd as it posted a 89% drop in its consolidated net profit at Rs 3 crore for the fourth quarter ending 31 March.
In the corresponding quarter a year-ago, net profit was Rs 30 crore, the company said in a press statement. Sales of the company increased 13% to Rs 949 crore during the quarter ending 31 March from Rs 839 crore in the corresponding quarter a year-ago.
The Raymond stock closed at Rs 396.50 down by 1.76% while the Bombay Stock Exchange marginally declined by 0.33% to close at 17,151.29.
—Sapna Agarwal
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Indo Rama net drops by 77% to Rs 31.96cr
New Delhi: Indo Rama Synthetics (India) Ltd. posted today a decline in net profits by 77 % to Rs 31.96 crore for the year ended 31 March, 2012 from Rs 139.41 crore last year primarily due to rupee depreciation, continuing high raw material prices and low demand in the domestic market. For the quarter ended 31 March, 2012, net profit dropped by 64% to Rs 35.47 crore from Rs 100.68 crore in the corresponding period a year ago.
The net sales for the company increased marginally for the financial year by 5.26% to Rs 2943.27 crore as against Rs 2796.06 crore in the previous year. The company expects an increase in sales by 20% this financial year.
“We are expecting growth in our turnover by more than 20% year on year because of our volume growth and anticipated rupee depreciation,” said O.P. Lohia, chairman and managing director, Indo Rama Synthetics (India) Ltd. “We are currently operating at 70% of our capacity, but we are going to increase our capacity utilization to more than 80%, which will yield 10% to 15% growth in sales.”
—Moulishree Srivastava
