Hindustan Sanitaryware & Industries (HSIL) today said its net profit declined by 6.27% to Rs 25.85 crore for the third quarter ended December 31, 2011, due to high input cost and rupee depreciation.
The company had posted a net profit of Rs 27.58 crore for the corresponding period of previous fiscal, HSIL said in a filing to the Bombay Stock Exchange (BSE).
Net sales of the company, however, rose to Rs 337.41 crore for the third quarter, compared to Rs 276.88 crore in the same period previous fiscal.
Commenting on the development HSIL Joint Managing Director Sandip Somany said: "Operating profit margins during the quarter were under pressure due to increase in raw material costs, imported allied product cost due to rupee depreciation and marketing expenses for launch of new products and brand."
"Dollar appreciation, which surprised everybody, was a major factor behind this increase as well as the rise in fuel oil and gas prices," he added.
For the nine months ended December 31, 2011, the company posted a net profit of Rs 77.37 crore, compared to Rs 55.04 crore in the same period previous fiscal.
Shares of HSIL today closed at Rs 129.60 on the BSE, down 6.26% from its previous close.