Philips India operating profit rises by 55% to Rs 195 million
Our Corporate Bureau
30 October 2002
New Delhi: Philips India (www.philips.com), a subsidiary of the Netherlands-based Royal Philips Electronics NV, has announced improved results for the quarter ended 30 September 2002. The results show an improvement over the third quarter of 2001 with sales and income from operations showing a modest growth of about 3.4 per cent over the comparable period in 2001.
The operating profit (after depreciation and interest, but before exceptional items) improved by 55 per cent to Rs 195 million (Rs 126 million in Q3 2001). The interest cost was lower at Rs 15 million (Rs 42 million for Q3 2001). The post-tax profit improved by 56 per cent to Rs 136 million (Rs 87 million in Q3 2001).
Says Philips India director S Venkataramani: “Our performance this quarter has been in line with expectations. There has been a modest growth over 2001 under relatively flat market conditions. While profitability has improved over the previous year, prices and margins continued to be under pressure. Expenses and financing costs have been contained and our immediate focus is to maintain the performance of the last few quarters. We will continue to address the high performance and mid-tier segments and in bringing innovative and aspirational products to our consumers.“
Consumer electronics During the quarter, volume sales of TV sets grew by about 5 per cent as against a nine-month volume growth of over 40 per cent. In a market that saw prices falling sharply during the quarter, the division maintained its 2001 Q3 sales value in Q3 2002 even as it recorded an increase of over 30-per cent value growth for the nine-month period. Sales of audio products, especially in the high performance mini-systems segment, grew appreciably during the quarter. Overall, the consumer electronics division's performance has been satisfactory.
Lighting The market for lighting products has not shown any appreciable growth over Q3 2001. The impact of excise duty on GLS lamps and price and margins pressures has had an adverse impact on the operating profitability of the division. The division is taking necessary steps to restore profitability over the coming quarters.