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Parrys Confectionery Q2 net at Rs 1.92 cr

Our Bureau

CHENNAI, Oct. 29

PARRYS Confectionery Ltd (PCL) has registered a net profit of Rs 1.92 crore on a turnover of Rs 25.14 crore for the quarter ended September 30, 2001 against a net loss of Rs 1.54 crore on a turnover of Rs 28.03 crore for the corresponding period last yea r.

For the second quarter of this year, total expenditure was Rs 21.08 crore (Rs 26.96 crore), interest Rs 64 lakh (Rs 85 lakh), depreciation Rs 1.48 crore (Rs 1.75 crore), and extraordinary items Rs 2 lakh. According to the company, the cumulative deferred taxation as on April 1, 2001 is being considered in the accounts of the current financial year.

According to the company, extraordinary item represents voluntary separation expenses. The company has amortised the expenditure of Rs 91 lakh incurred during the year over a period of five years instead of the practice of absorbing it in the profit and loss account in the year in which it is incurred. The management expects that the benefits of this expenditure will endure over a period of years. Consequently, the loss for the half year is lower by Rs 73 lakh.

The company had a loss of Rs 17 lakh on a turnover of Rs 47.67 crore for the half-year ended September 30, 2001 against a loss of Rs 4.5 crore on a turnover of Rs 54.67 crore for the same period last year.

According to the press release, this was due to cost management measures, rationalisation of manufacturing capacities and better product mix. The company incurred Rs 85 lakh toward advertisement expense during the first half out of a total estimated expe nditure of Rs 550 lakh for the year.

According to the company's press release, the organised sector of the sugar-boiled confectionery industry is going through sluggish market conditions ever since the eight per cent excise duty hike effected in February 2000 and industry sales fell by eigh t per cent.

The company has recorded a growth of 10 per cent in the second quarter sales over the first quarter of the current year. This is due to the various marketing initiatives taken by the company, including many retail-oriented schemes. The company has introd uced small units packs of various products at prices ranging from Rs 10 to Rs 20.

Coffy Bite, the company's major brand, is being supported with a new series of advertisement campaigns aired across all major TV channels. The company is in the process of relaunching Madras Cafe with a more contemporary image and also introducing new pr oducts in the fruit candy segment.