Godrej Foods posts Rs 26-crore loss

Our Marketing Bureau

Mumbai, Sept 20: Godrej Foods Ltd has reported a net loss of Rs 26.33 crore for the quarter ended June 30, 2001, as against a loss of Rs 6.15 crore in the corresponding period last year.

Net sales have dropped by 5.7 per cent to Rs 39.73 crore from Rs 42.16 crore last year. Total expenditure during this period has risen to Rs 59.78 crore from Rs 43.52 crore last year.

The financial year of the company was extended to 15 months ie March 31, 2001, to June 30, 2001.

In view of the prolonged recession in the international and domestic edible oil market, the company reduced the volumes of its trading activity, as also its branded edible oils products in order to reduce the business risks. Further the management, as a measure of prudence decided to provide for all outstandings due for more than six months, the company has informed.

As a result of the above factors, the results for the 15-month period ended June 30, 2001, amounted to a net loss of Rs 59.79 crore. In the previous accounting year, the company posted a net profit of Rs 1.18 crore.

The company had reported a turnover of Rs 174.44 crore for the 15 months period ended June 30, 2001, as against Rs 405.86 crore in the previous accounting year ended March 31, 2000.

According to an analyst: “The loss is not significant considering that the oil markets have been gloomy due to the prolonged recession.” Another analyst said that the company has an enhanced pressure to breakeven by the next year to atleast remain in the business.

Meanwhile, the board of directors of the company have decided to demerge the manufacturing business of Godrej Foods together with its marketing, sales and finance and other related functions into Godrej Industries Ltd with June 30, 2001 as the appointed date. The shareholders of Godrej Industries have approved the scheme of demerger at the court convened meeting on September 2001. The court-convened meeting of Godrej Foods is scheduled for October 3, 2001.