MUMBAI, JULY 22: The net profit of Philips India Ltd has crashed to Rs 92 lakh for the quarter ended July 4, this year from Rs 12.69 crore recorded in the quarter ended June 30, 1998. Shares of Philips India fell eight per cent in afternoon deals on Thursday after the firm announced a sharp drop in net profit for the second quarter of 1999.The company's scrip finally closed down at Rs 173.85 on the BSE as compared to Wednesday's closing of Rs 186.Sales income for the quarter ended July 4 is Rs 435 crore as compared to Rs 407 crore recorded in the same period of last year. In a statement, the company attributed the fall in its net profit to the ``severe price erosion'' in the consumer electronics business. ``Also, recurring costs at the company's unutilised factory at Salt Lake in Calcutta has contributed adversely to the pre-tax profit,'' the company said. The Salt Lake plant has been sold to Videocon group but as the unions have opposed the sale in the Calcutta High Court, the sale has not been finalised as yet.For the half-year ended July 4, 1999, the net profit has gone up to Rs 5.3 crore as compared Rs 2 crore recorded in the half-year of previous fiscal. The turnover for the half-year ended July 4 was Rs 832 crore as against Rs 766 crore.The exceptional items for the latest quarter were the net of restructuring expense at its consumer electronics factory in Calcutta of Rs 17.9 million, voluntary retirement costs of Rs 13.8 million and profit on sale of investments of 12.9 million. The company said the figures for the year-ago period have been recast. Philips India Ltd makes televisions, radios, music systems and household appliances. It is 51 per cent owned by Netherlands-based Royal Philips Electronics N.V. The year earlier period ended on June 30.
