• PAGE ONE
• INDEX
• HOME

Gillette India posts Rs 3.55 cr loss in Q3

Our Bureau

NEW DELHI, Oct. 24

GILLETTE India Ltd, a subsidiary of the Gillette Company, US, ended the third quarter of 2001 fiscal with a net loss of Rs 3.55 crore.

The company recorded profit before interest and depreciation of Rs 8.07 crore as against Rs 10.02 crore in the corresponding quarter last year.

However, a higher depreciation burden on account of capitalisation of the Bhiwadi expansion project and the new corporate office and an interest cost of Rs 3.42 crore (Rs 3.92 crore) resulted in a loss after exceptional items and tax of Rs 2.54 crore.

An exceptional expenditure of Rs 2.98 crore on restructuring and inventory write-off has put the loss before provision for tax at Rs 5.52 crore. Due to a deferred tax reversal of Rs 1.97 crore, net loss after provision for tax for the quarter stood curbe d at Rs 3.55 crore (Rs 1.39 crore).

The company ended the quarter with sales growth showing in key segments including double-edged and top of the range Mach 3. Domestic sales volumes went up by 26 per cent while domestic sales realisation showed an increase of 19 per cent. However, net sal es grew by 2.3 per cent for the quarter as a result of lower diversified business and exports realisation.

The sales performance was offset by the company's ongoing trade destocking initiative to rationalise trade inventories and consequent improvement in the working capital. Profits were impacted by higher depreciation costs and extraordinary expenses on acc ount of one-time costs for VRS and write-off on obsolete and damaged inventories, a company release said.

Further, the company in the quarter under review reported net sales of Rs 132.5 crore, an increase of 2.3 per cent over the corresponding quarter. However, domestic sales realisation for the grooming and portable power business grew by 19 per cent going up from Rs 88.28 crore in the corresponding quarter to Rs 105.39 crore this year.

The nine-month (January-September 2001) profit before interest and depreciation recorded an increase of 5.3 per cent at Rs 33.96 crore as against Rs 32.25 crore in the corresponding period. Net sales in the period increased to Rs 354 crore (Rs 345.3 cror e). The company recorded a net loss after provision for tax in the period of Rs 2.43 crore as against a profit after provision of tax of Rs 5.48 crore in the corresponding period.

The loss for the nine-month period was contributed in a substantial measure by the outlay for exceptional, one-time expense of Rs 5.27 crore on VRS (Rs 2.1 crore) and write-off on damaged and obsolete goods.