Philips turns corner

MUMBAI, APR 21: Philips India Ltd has turned the corner by reporting a net profit of Rs 4.46 crore in the first quarter ended on March 19...

MUMBAI, APR 21: Philips India Ltd has turned the corner by reporting a net profit of Rs 4.46 crore in the first quarter ended on March 1999 compared to a Rs 10.61 crore loss in the same period of the previous year.

The Netherlands-based Royal Philips Electronics has nominated SM Datta as chairman of Philips India following DN Ghosh’s decision not to stand for re-election at the forthcoming annual general meeting to be held next month. Datta was appointed director of the company in March 1993. Ghosh took over as chairman in November 1989.

Meanwhile, sales growth in the current year’s first quarter was 11 per cent at Rs 397.5 crore as against Rs 358 crore in the previous year’s corresponding period, a company statement said here today.

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The two main divisions of the company – lighting and consumer electronics – witnessed growths of 18 per cent and seven per cent respectively compared to eight and five per cent respectively last year.

The company’s lamps and audio maintained their market shares at 34 per cent and 33 per cent respectively. The operating profit after charging depreciation and interest amounted to Rs 10.92 crore for the period, up from Rs 3.19 crore in the same period in 1998.

Philips had an outgo of Rs 1.06 crore on account of voluntary retirement scheme payments and running cost of the company’s consumer electronics factory at Calcutta and another Rs 4.2 crore as provision for excise duty.

The company is also implementing plans to address the millennium issue in respect of the integral business chain including supply base and customer base and is developing contingency plans to minimise external risks at a cost of Rs five crore.