The Hindu Business Line : Philips prunes net loss to Rs 21.2 cr

The consumer electronics division, which posted a Rs 33.39-crore loss before interest and tax last year, has notched a profit before interest and tax of Rs 12.80 crore this time around.

Net sales depicted a flat growth at Rs 1,544.6 crore (Rs 1,508.4 crore).

Interest saw a sharp decline from Rs 23.8 crore to Rs 15.9 crore. Mr Geert A.M. van Heumen, Director & Senior Vice- President (Finance & Administration), Philips India, attributed the fall to the retirement of high-cost debt, improved working capital management and replacement of earlier high-cost debt with low-cost borrowing.

Exceptional items included income of Rs 78.8 crore from sale of property as well as expenditure of Rs 94.9 crore on restructuring.

At a press briefing, Mr Ramachandran, Managing Director & CEO, Philips India, pegged the improvement in the company's performance to improving operational efficiencies and better cost management across the company.

"The company has delivered positive cash flows of Rs 62.8 crore after meeting restructuring costs," he pointed out.

On the open offer by Royal Philips Electronics N.V, he said: "The parent was able to raise its stake from 84 per cent to around 91 per cent through the recent open offer which closed on February 5."

The mandatory offer which follows is expected to be made in the next 35 to 40 days and will span a period of six months after which the company will make a decision on the delisting, according to Mr Rajiv J. Wani, Company Secretary & General Manager (Investor Relations).

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Philips prunes net loss to Rs 21.2 cr