Bpl Refrigeration Net Almost Halved At Rs 5.18 Crore

BPL Refrigeration Ltd, the firm from the stable of Rs 2,700 crore BPL group, has recorded a steep fall in its net profit despite clocking higher sales and improved profit before tax for the year ending march 1997.

The net profit stood at Rs 5.18 crore, which is almost half of last years Rs 10.11 crore.

The company fared exceedingly well to consolidate its position in frost-free refrigerator segment though the consumer durable industry recorded a negative growth during the year, said Ajit G Nambiar, vice-chairman, of the company.

He said, "Due to low duty, MNCs have been dumping appliances to pile pressure on the margins of domestic companies. Domestic white goods makers have been suffering from huge interest burden and the woes got accentuated further by MNCs aggressive marketing," Nambiar said. He added that most of these MNCs have booked huge losses during the period.

 

The company clocked a gross sales of Rs 237.67 crore against Rs 212.18 crore in the previous year to have a healthy profit before tax of Rs 30.18 crore against 27.43 crore in the previous year. However, the financial expenses and depreciation increased to be at Rs 17.99 crore (Rs 12.81 crore) and Rs 7.01 crore (Rs 4.51 crore), enough to shrink its bottomline. Thus, the net profit stood at Rs 5.18 crore. The board of directors have halved the dividend payout to 10 per cent for the year ending March 1997 against 20 per cent payout of last year. However, Nambiar held out an assurance of better performance for the current year saying that lowering of income tax rates and consolidated position of the company in refrigerator market would result in a better performance

The company consolidated its position in volume sales too as it sold 1,69,850 refrigerators to have a whopping 52 per cent market share in frost-free refrigerators segment while ordinary refrigerator market in the country recorded a nil growth, Nambiar said.

However, the flagship of the group BPL Ltd recorded a healthy 9.3 per cent growth to have a sales turnover of Rs 1290.60 crore against Rs 1180.38 crore in 1995-96. While the operating profits showed a growth of 12.3 percent to be at Rs 97.80 crore against Rs 87.08 crore in the previous year profit after tax rose by Rs 1.14 crore to be at Rs 48.47 crore during the year ending march 1997 against Rs 47.33 crore in the previous year.

The company increased its market share in volume terms to 29 per cent recording a growth of 10.6 per cent in CTV segment.