Consumer electronics major Philips India has turned the corner in the first quarter of the present fiscal (January to December). The company has posted a net profit of Rs 19.08 crore for the quarter ended March 31, 2002 against a loss of Rs 6.36 crore for the quarter ended March 31, 2001.
The Philips board also approved the merger of three group companies-- Punjab Anand Lamp Industries, Philips Glass Industries and Electric Lamp Manufacturers India-- with itself today.
Philips India's sales and income from operations rose 7.1 per cent in the first quarter (Q1) of 2002 to Rs 373.60 crore from Rs 346.47 crore in Q1 2001. Operating profit was Rs 23.86 crore against Rs 2.19 crore.
Commenting on the results K Ramachandran, managing director & chief executive officer, Philips India said, " The results reflect our consistent focus on improving performance through operational efficiencies and promoting great value to our customers and consumers."
Ramchandran has said the merger of the three group companies is intended to place the lighting business in India under one Philips entity. This he said will integrate operations and improve efficiencies across the supply chain.
Under the scheme of amalgamation approved by the board, 10 shares of PALI will be issues for every 11 shares of Philips India. Similarly, seven shares of Philips Glass Industries will be issued for one equity share of Philips India.
The exchange ratio was arrived at on the basis of a valuation by the S B Billimoria & Co and N M Raiji & Co. DSP Merrill Lynch acted as financial advisors to the transaction. The merger, which comes into force with retrospective effect from April 1, 2002, is subject to approval by the high courts of Kolkata, Chandigarh and Ahmedabad.
