EID Parry Q2 Profit Dips 39% To Rs 9 Cr

Chennai, October 25: | Updated: Oct 26 2002, 05:30am hrs
Notwithstanding a boost in other income, the Chennai-based EID Parry (India) Ltd has reported a 38.88 per cent decline in net profit to Rs 8.77 crore for the second quarter ended September 2002, as against Rs 14.35 crore during the corresponding period last year. Net sales were lower by six per cent at Rs 438.56 crore (Rs 467.02 crore). Other income included income of Rs 6.21 crore from sale of investments.

The lacklustre performance is due to lower sales volume of fertilisers and pesticides by eight per cent and seven per cent, respectively, according to a company press release.

The failure of the south-west monsoon aslo affected the fertiliser and pesticides sales. The imposition of special additional duty at four per cent on imported rock phosphate and sulphur had a adverse impact on the fertiliser business profitability. The frequent changes and delays in announcing the phosphatic fertiliser policy continues to hurt the industry and the company, the release added.

Also, the low international price of sugar coupled with release orders obtained through courts by some manufacturers over and above the quota fixed by the government had depressed the domestic price of sugar to a six year low. Export of 1,00,000 metric tonne of sugar during the quarter helped lower finished goods stock, the release added.

The Parryware business reported a robust volume growth of seven per cent with improved profitability.