For FY14, Everest Industries reported fall in its net profit of Rs9.15 crore due to higher costs and muted sales
Everest Industries, a Delhi-based steel building and building material manufacturer, reported a huge fall in its full year net profit fell mainly on dwindling sales from its its steel buildings business and higher costs of freight (transportation charges) and employee benefits.
For the 12 month to end-March, Everest Industries said its net profit fell 82% to Rs9.15 crore from Rs52.50 crore, while its total revenues, including sales, grew marginally (2%) to Rs1,035.25 crore from Rs1,014.13 crore, a year ago period.
Everest Industries' FY14 total expenditure increased 9% to Rs1,022.12 crore compared with Rs938.40 crore a year ago period. It said during the FY14 freight charges increased 20% to Rs91.02 crore from Rs75.73 crore in a same period year ago. Everest Industries' employee benefit expenditure increased 21% to Rs26.78 crore from Rs22.05 crore a year ago period.
Everest Industries said profitability of its steel buildings business tumbled 65% to Rs45.21 crore from Rs129.44 crore, while its building products profitability grew only 3% to Rs387.31 crore from Rs373.43 crore.
“Managerial remuneration forming part of employee benefits expenses exceeds the limits prescribed under section 198 of the Companies Act, 1956 by Rs2.27 crore and is subject to approval of shareholders and Central Government,” the company said in a regulatory filing.
For the March quarter, Everest Industries said its net profit fell 25% to Rs3.04 crore from Rs4.07 crore, even as its total revenues, including sales, increased 27% to Rs306.48 crore from Rs241.30 crore, same period last year.
Everest Industries declared a dividend of Rs2.50 per share.
Everest Industries closed Wednesday marginally down at Rs155.80 on the BSE, while the 30-share Sensex also ended the day marginally down at 22,417.
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