The Hindu Business Line : Nippo Batteries Q3 net rises four-fold

Chennai, Feb. 5 Helped by a fall in zinc prices, Nippo Batteries Ltd has reported a nearly four-fold increase in its net profit for the third quarter of the current year, compared with the same quarter last year.

The Chennai-based company, which produces dry cells, made a net profit of Rs 3.99 crore against Rs 1.02 crore in Q3 last year.

Average price of zinc, a key raw material, fell to Rs 1.26 lakh a tonne in the quarter, compared with Rs 2.03 lakh a tonne in the comparable quarter of last year. Nippo Batteries consumes about 400 tonnes to 500 tonnes of zinc each month.

Lower material cost contributed Rs 10.25 crore to the incremental profits, shows the company’s analysis of results.

However, price reduction and changes in product mix ate Rs 6 crore into profits.

This was also the reason why the net profit for nine months ended December was more than double that for the whole of last year.

Nippo Batteries’ paid-up equity capital is Rs 3.75 crore while its reserves, as of March 31, 2007, amount to Rs 109.15 crore.

Reserves would grow further this year with retained earnings.

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