Financial Daily from THE HINDU group of publications
Wednesday, Jan 30, 2002
Corporate Results - Consumer Electronics
BPL Q3 net down 42.64%
BANGALORE, Jan. 29
BPL Ltd has posted a 42.64 per cent decline in net profit for the third quarter compared to the same period last year. The company has attributed the decline mainly to the drop in home appliances sales.
Net profit for the quarter ended December 31 dropped to Rs 11.50 crore, compared to Rs 20.05 crore last year. The company's gross sales also suffered, declining 21.05 per cent to Rs 401.29 crore from Rs 508.29 crore earlier.
In a statement, BPL said that the company's net and gross sales were hit by the dampened domestic audio and home appliances market.
Incidentally, last week, its main rival, Samsung India Electronics Ltd (SIEL), reported a robust growth in its home appliances business during 2001.
BPL's home appliances business is expected to bounce back once it finalises the proposed 50:50 joint venture with the Japanese technology collaborator, Sanyo.
However, the company has given no reason for the delay in finalising the joint venture, which was expected to take shape in December.
Senior company officials said that a combination of tardy market conditions and BPL's restructuring exercise contributed to the decline in revenue.
"We were less aggressive in the home appliances business in the ongoing financial year because of the impending transaction with Sanyo,'' they said.
In 2001, BPL also lost its leadership share in the frost-free refrigerator business to rivals such as Whirlpool and Samsung.
Its other major business in the home appliances category - washing machines - continued to remain in tatters with multinational rivals stealing the march.
However, BPL's CTV business has looked up during the quarter under review.
The company said that CTV sales turnover grew to Rs 304.84 crore, from Rs 292.58 crore earlier, registering 4.2 per cent growth.
CTV sales of 3,13,881 units showed 19 per cent growth during the quarter, and a 37.1 per cent increase over the second quarter of the current fiscal.
The company has projected an exit market share of 20 per cent in CTVs during the current year.
The brand's cumulative share in the first nine months has hovered around 18 per cent.
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