Cadbury India net profit at Rs 190 million

Mumbai: Cadbury India Ltd has posted a net profit of Rs 190 million for the quarter ended 16 June 2002 as compared to Rs 93.60 million for the quarter ended 17 June 2001.

The total income has increased from Rs 1,206.80 million for JQ01 to Rs 1,363.40 million for JQ02. The other income for the current quarter is at Rs 127.70 million (corresponding quarter last fiscal: Rs 21.90 million) out of which Rs 107.70 million is on account of the profit on sale of excess immovable property at Thane, Maharashtra.

Cadbury had sold the land near its factory at Thane for Rs 11 crore early this year. The company says it has struck an agreement with Kalpataru Properties, Thane, for selling the land, which measured about 27,520 square metres. The deal helped Cadbury unlock the value of its investments and helped it to shore up its bottomline.

Recently Cadbury India also refurbished its old office block in Mumbai and is now planning to lease out the extra space available after the renovation, with a view of earning some funds.

Cadbury India has three factories, which it operates on its own, while three other facilities are run through arrangements with third parties.

To overcome the negative impact of sluggishness in the fast-moving consumer goods market on its performance, the company undertook cost-cutting exercises over the past one year, say analysts. “As a future strategy, it plans to reduce manufacturing and supply-chain costs.“ During the past few months, Cadbury India had offered a voluntary retirement scheme to 29 employees in order to bring down costs.

Cadbury Schweppes recently hiked its stake in the Indian company to 90 per cent by buying out around 39 per cent of the public shareholding. Cadbury India has already made an application for delisting