Indian biz of MNCs performs well in latest quarter
Most of the Indian businesses of overseas multinational companies seem to perform better than their parent entities, with many recording good performance in the first three months of 2009.business Updated: May 24, 2009 12:25 IST
Most of the Indian businesses of overseas multinational companies seem to perform better than their parent entities, with many recording good performance in the first three months of 2009.
Right from cement manufacturers to FMCG firms to pharmaceutical companies, majority of the businesses of foreign players having significant presence in the country have seen better results.
The two Indian group companies of Swiss cement maker Holcim-- ACC and Ambuja Cements-- have seen increased fourth quarter profits. Interestingly, Holcim has reported a steep decline in net income for the first three months of this year.
Similarly, FMCG major Hindustan Unilever has seen a marginal rise in its quarterly profits whereas its parent firm Unilever's quarterly net income has tumbled more than 40 per cent.
Further, drug maker Merck India's sales rose in the latest quarter while that of its US-based parent entity Merck saw a fall in net income.
Swiss cement firm Holicm's two Indian Group companies --ACC and Ambuja Cement has posted good earnings in the first quarter of 2009. ACC posted Rs 399.34 crore in the first quarter ended March 31, 2009, while it had a net profit of Rs 324.3 crore in the year-ago period.
In the same quarter Ambuja Cement registered a 2.4 per cent growth in net profit at Rs 334.05 crore, while its total income rose 11.29 per cent at Rs 1,888.48 crore.
However, parent company Holicm's net income plunged 62 per cent to 195 million Swiss francs in the first three months of the year. Its net sales also tumbled 17.9 per cent to 4.5 billion Swiss francs, while sales from its two Indian group firms have increased.
"The two Indian Group companies ACC and Ambuja Cements increased their sales of cement significantly in all areas... the Group companies benefited from rural housebuilding and the government’s economic stimulus program," Holcim said in a statement.
FMCG company Hindustan Unilever reported a 2 per cent jump in profit at Rs 394.99 crore in the fourth quarter ended March 31, 2009. Anglo-Dutch parent firm Unilever's profit declined by 43 per cent at 803 million euros in the latest quarter.
In the first three months of 2009, Switzerland-based Nestle witnessed a two per cent decline in sales whereas its Indian arm saw rise in the same during that period.
Nestle India's total income shot up more than 16 per cent and its profit jumped 23 per cent in the first three months of this year.