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Henkel-SPIC Q3 net zooms

Our Bureau

CHENNAI, Oct. 22

HENKEL-SPIC India Ltd has reported a net profit of Rs 1.96 crore for the quarter ended September 30, 2001, as against Rs 72 lakh in the same quarter last year - an increase of 172 per cent.

Henkel-SPIC's financial year is the same as the calender year. In the first three quarters of the current year, the company made a net profit of Rs 4.35 crore, as against Rs 2.72 crore in the corresponding period of last year.

Further, the net profit for the period under consideration is more than what the company achieved (Rs 3.04 crore) in the whole of last year (ended December 31, 2000).

In the July-September period of the current year, the company achieved a turnover (including excise) of Rs 82.21 crore, as against Rs 71.74 crore in the same period last year.

Raw material consumption amounted to Rs 53.96 crore (Rs 43.79 crore). Staff costs amounted to Rs 3.27 crore (Rs 2.50 crore) and 'other expenditure' Rs 24.19 crore (21.97 crore).

Interest charges increased to Rs 1.37 crore, from Rs 79 lakh in the comparable quarter of last year. In the nine-month period too, interest costs increased to Rs 4.22 crore, from Rs 2.56 crore.

Mr A. Satishkumar, Managing Director, Henkel-SPIC, told Business Line today that the interest charges were higher because last year, the German promoter, Henkel, had brought in money by way of capital. The interest earned on that money had resulted in lo wer working capital requirements. This benefit was not available this year, he said.

Depreciation was Rs 1.40 crore (Rs 1.34 crore) in the third quarter.

Mr Satishkumar said that despite the market being bad, the flagship products of the company had done well. He said that sales of 'Margo' had grown by 20 per cent. The company's detergent powder brands, Henko and Mr White, grew by 30 per cent.

Mr Satishkumar expects the company to end the year with a turnover of around Rs 350 crore. Last year, the turnover was Rs 300.92 crore.

Henkel-SPIC is examining a proposal to set off the company's accumulated losses (Rs 52.27 crore, at the end of last year), against the balance in the share premium account (Rs 178 crore). Commenting on this, Mr Satishkumar said that the company's board m ay consider the move only next year.