The Hindu Business Line : EID Parry Q4 profit at Rs 23 cr; to pay 75 pc

EID Parry (India) Ltd has reported a net profit (before minority interest and share of profit or loss from associate companies) of Rs 22.81 crore on net sales of Rs 206.34 crore for the quarter ended March 31, 2004.

During the corresponding period in the previous year, the net profit was Rs 14.74 crore on sales of Rs 304.31 crore.

Interest has been brought down to Rs 1.35 crore (Rs 6.06 crore) and the provision for taxation (current) was Rs 4.50 crore (Rs 1.20 crore).

The company's board has recommended a dividend of Rs 7.50 on an equity share of Rs 10 (75 per cent).

For the year-ended March 31, 2004, the company reported a consolidated net profit (after minority interest and share of profit or loss from associate companies) of Rs 63.58 crore (Rs 41.62 crore) on net sales of Rs 1,783.41 crore (Rs 1,591.50 crore).

According to a press release, the performance during 2003-04 cannot be compared with that of the previous year because of restructuring within the company.

The results for the various segments of the company's operations show that sugar contributed Rs 20.65 crore profit before tax and interest for the quarter ended March 31, 2004 against Rs 13.38 crore in the corresponding period in the previous year. Parryware accounted for Rs 5.19 crore (Rs 4.20 crore) and bio-products Rs 5.27 crore (Rs 1.19 crore).

To focus on core businesses such as sugar, sanitaryware and bio-products, the company demerged the farm inputs division to Coromandel Fertilisers Ltd and merged Parry and Company Ltd and the Mofussil Warehouse and Trading Company Ltd with effect from April 1, 2003.

The improvement in the company's performance may be attributed to cost reduction measures and improved selling price of sugar.

Parryware, a leading brand in the organised sector, grew by 12 per cent, the bioproducts division turned positive due to significant growth and acceptance of its neem-based pesticide, Neemazal, in Europe, the US and North and Central America.

Borrowing levels have dropped due to repayment of long-term loans, transfer of debts to Coromandel Fertilisers on restructuring and reduction in working capital.

The company has also taken advantage of softening interest rates through various instruments to bring down the interest costs to Rs 7.53 crore during the year from Rs 32.82 crore earlier.