Parle net profit rises 15% in FY19, months after company warned of layoffs citing drop in demand
New Delhi, Oct 16: One of the oldest biscuit-makers Parle Biscuits Private Ltd has reported 15.2 per cent year-on-year (YoY) growth in net profit for the financial year 2018-19 (FY19).
The development comes two months after it indicated that it would have to lay off people due to slowing growth and falling demand for entry-level biscuits.
Parle Biscuits' FY19 net profit was Rs 410 crore versus Rs 355 crore reported the previous year, according to information shared by business platform Tofler.
Total revenue grew 6.4 per cent YoY to Rs 9,030 crore, with revenue from operations alone growing nearly 6 per cent to Rs 8,780 crore from the previous year. Other income jumped 26 per cent to Rs 250 crore in FY19, aiding top-line growth, it added.
In August, Parle had sought a cut on the Goods and Services Tax (GST), adding that it would be forced to lay off 10,000 workers.
"We have multiple biscuit brands that are aimed at mid- and low-income consumers which form the core consumer base of a category such as ours, and we are hoping the GST increase will be rolled back if the government wants to revive demand," the company official had said.
Founded in 1929, Parle Products employs around 1 lakh people. Parle has 125 manufacturing units as well as 10 company-owned facilities. The company employs 1 lakh people and operates 10 company-owned plants, in addition to 125 third party manufacturing facilities.
Parle, which also has started making other savouries, dominates the low-end biscuit market.