J & N Net Profit Declines By 3% To Rs 3.56 Crore

Paints major, Jenson & Nicholson (J&N), has posted a nearly three per cent fall in net profit for the financial year 1996-97. The company earned a net profit of Rs 3.56 crore during the last fiscal against Rs 3.67 crore during 1995-96.

S Subbrewal, managing director, J&N, said that the fall in profits was due to the company spinning off its industrial electronics division into a separate company called Schenck Jenson & Nicholson Ltd with 50 per cent equity participation from Carl Schenck AG, Germany. The company was formed in March 1996, and the 1996-97 figures are exclusive of the sales and profits from this unit, he said.

 

The net sales of the company also suffered slightly because of the spin-off, dropping by about 3.15 per cent to Rs 142.15 crore from Rs 146.78 crore in 1995-96. The gross profit, however, increased to Rs 5.61 crore from Rs 5.41 crore in 1995-96.

J&N's Instacolor range has been the principal contributor to the profit margins. This division has been responsible for nearly 9 per cent of the total sales of the company over the previous fiscal, Subbrewal said.

The reserves of the company have shown a significant increase of about 25 per cent from Rs 25.41 crore during 1995-96 to Rs 31.63 crore over the previous fiscal. The paid up equity of the company remained unchanged at Rs 4.13 crore.

It is expected that the 1997-98 figures will experience a steep rise owing to the projects and tie-ups which will become operational during the current fiscal, Subbrewal said.

The company has just finalised the details for its 50:50 joint venture with Herberts for the auto refinish paints segment. The company also has a 50:50 joint venture with Japanese marine paints major, Chugoku Marine Paints. The project has received clearance from the Foreign Investment Promotion Board (FIPB), and is expected to commence operations soon.