MUMBAI, Nov 25: Godrej Soaps has posted an 8.53 per cent rise in net profit to Rs 24.29 crore in the first six months ended September 1997 as against Rs 22.38 crore reported in the corresponding period last year. Net sales increased by 50.78 per cent to Rs 401.19 crore as against Rs 266.06 in the corresponding period last year. Operating profit margins increased to 15.76 per cent from 10.62 per cent in the previous year.

Net profit margins were, however, down to 6.05 per cent from 8.41 per cent during the same period last year. Gross profit margins too shrunk to 17.65 per cent from 25.88 per cent last year.

Total expenditure increased to Rs 337.94 crore from Rs 237.78 crore in the same period in 1996-97. Interest charges were pegged at Rs 33.9 crore. Depreciation was higher at Rs 10.06 crore as against Rs 9.18 crore last year.

Tax provision was lower at Rs 2.59 crore as against Rs 3.37 crore in 1996-97. According to the company, extraordinary income of Rs 6.30 crore received during the period represents non-compete fee received from Sara Lee DE/NV. According to analysts, growth in sales was largely driven by an increase in the sales of consumer products on account of better distribution. The company has started manufacturing soap brands for HLL.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.