Philips profit rises 134 per cent

The results of the company, announced today, showed that sales and income from operations marginally increased by four per cent at Rs 1744.7 crore as compared to Rs 1675.1 crore in 1998. Interest charges during 1999 were also lower at Rs 32.5 crore against Rs 35 crore in the previous year.

A company release said that lighting, CTV, domestic appliances businesses showed strong volume growth.

Philips India MD K Ramachandran attributed the improved profit margin to the enlargement of market share followed by various cost cutting measures through organisational restructuring. The company is embarking upon a major e-commerce programme to improve its supply chain mechanism as well organisational operating skill.

A taskforce has been created to undertake various information technology related measures including implementation of e-commerce business. Probably, during this year, a section of philips consumers could buy philips products directly through internet, Ramachandran said. The company has spent about Rs 70 crore in IT related development programmes in the last five years.

Another factor that led to improve the profit margin was the net charge on exceptional items such as revenue expences incurred at the consumer electronic factory in Calcutta Rs 6.34 crore, insurance claims Rs 1.25 crore, surplus on sale of non-ceramic passive components undertaking Rs 11.40 crore, profit on sale of long term investments Rs 3.19 crore, release of provision for excise duty Rs 4.17 crore and employees voluntary retirement scheme Rs 13.78 crore.