Lotte India Corporation Ltd Q3 sales up 5.37% at Rs.4314 Lakh

Chennai, January 25, 2007

The sales for the quarter was Rs.4314 Lakh as against Rs.4094 Lakh in the corresponding period of the previous year, a growth of 5.37%. The sales for the nine months ending 31st December 2006 was Rs.11965 Lakh as against Rs.10661 Lakh in the corresponding nine months of the previous year, a growth of 12.23%.

During the quarter ending 31st December 2006, the company has made a profit before tax of Rs.77 Lakh as against Rs.160 Lakh in the corresponding period of the previous year. For the nine months ending 31st December 2006 profit before tax was Rs.173 lakh as against Rs.169 Lakh in the corresponding period of the previous year.

The profitability for the quarter is lower mainly due to steep increase in raw material costs like liquid glucose, vanaspati etc., for which the company has already initiated various measures to maintain its margin. The company has also incurred interest of Rs.33.31 Lakh on Term Loan availed for meeting its expansion plans. Further, the profit for the corresponding quarter in the previous year included an exceptional income of Rs.24.31 Lakh arising out of insurance claims.

The company is currently exploring various opportunities for expanding its manufacturing facilities, brand building and improving its distribution network in order to achieve its aggressive growth plans.

Lotte India Corporation Ltd is a subsidiary of Lotte Confectionary Co. Ltd., Korea, which is a USD 1.2 billion flagship company of the "Lotte Group" of Korea. Apart from confectionary products, Lotte Group has interests in businesses like Retail Stores, Deparmental Stores, Food & Beverages, Distribution, Hotel & Tourism, Leisure Business, Heavy Chemicals, Communication, Construction, Electronics etc.

Source : Equity Bulls

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