Months after the biscuit manufacturers asked the government for a GST rate cut to boost slowing demand, Parle Biscuits posted 15.2 per cent on-year growth to Rs 410 crore in net profit for FY19
Months after the biscuit manufacturers asked the government for a GST rate cut to boost slowing demand, Parle Biscuits posted 15.2 per cent on-year growth to Rs 410 crore in net profit for FY19, business platform Tofler data showed. Parle Biscuits reported a profit of Rs 355 crore in the previous year. While revenue grew over 6 per cent to Rs 9,030 crore, the revenue from operations surged about 6 per cent to Rs 8,780 crore as against the last year, the data also showed. In August this year, the company had said that it may cut 10,000 employees in the ranks owing to muted biscuit demand. Parle Products declined to comment to the Financial Express Online queries.
In a recent interview, Mayank Shah, senior category head, Parle Products told Financial Express Online that while sales were down for its standard biscuits which sell for less than Rs 100 per kg, the company has done well in its premium line up which consists of Milano, Hide & Seek, and Bourbon. “Parle has seen an 8-10% jump in its premium biscuits sale even amid slowdown,” Mayank Shah, told Financial Express Online a week back.
Since 2017, the biscuit manufacturers have been asking for a cut in taxes on biscuits after the government grouped them in the same tax bracket as premium cookies or the ones priced more than Rs 100 per kilo, scrapping the diverse tax structure under the new GST regime. However, the Parle found some relief after Finance Minister Nirmala Sitharaman’s announcement of Corporate rate cut. With the new tax regime, Parle will see a tax relief as its current effective tax rate stands over 30 per cent, considerably higher than the new effective tax rate of 25.17 per cent, Mayank Shah told CNBC TV18 in a separate interview. For now, the company stands to benefit from the new regime and the recent cuts will provide a cushion to depleting sales.