Nestle, Alfa Laval & Mro-Tek results

CORPORATE SCORECARD

FMCG major Nestle India has reported a 36 per cent drop in net profit for the second quarter ended June 30, 2004 at Rs 42.78 crore. Domestic sales grew 3.1 per cent to Rs 485.3 crore.

"The market conditions have continued to be unfavourable, but the current dip in sales and profits also reflects the rationalisation of stocks that we have initiated," Carlo Donati, chairman and managing director, Nestle India, said in a statement.

While the company's exports during Q2 rose 6.5 per cent in volume terms, they actually dipped 21.4 per cent in value over the same period last year.

The exports of Rs 59 crore was lower mainly due to the shift towards low-realisation, bulk coffee pack exports to Russia. The company attributed the lower net profits partially to the higher tax cost resulting from a gradual phasing out of tax-holiday benefits on exports.

Nestle said events like parliamentary elections, change in the government, the upward movement of the rupee, the stock market crash and the inflationary upsurge in the economy have affected the company's performance.

"Though these initiatives negatively impact us in the short-term, Nestle is a healthy firm and prudent management decisions are being implemented to sustain its health and make it more robust in the future. We are satisfied with the direction in which we are moving and we will continue to leverage our operational efficiencies, growth opportunities and innovate and renovate products to add value to our consumers," Donati added.

Alfa Laval Q2 net flat

Pune-based Alfa Laval India has posted a flat net profit of Rs 16.65 crore in the second quarter ended June 30, 2004 as against Rs 16.22 crore in Q2 of 2003-04. Total income rose to Rs 114.02 crore (Rs 90.84 crore), the company informed the Bombay Stock Exchange.

Mro-Tek revenues up 21%

Mro-Tek, a networking and last mile access provider, has registered a 20.8 per cent growth in total revenue at Rs 25.50 crore for the first quarter of 2004-05 compared with Rs 20.79 crore in the previous corresponding quarter. Net profit was up 23 per cent at Rs 1.40 crore.