Alfa Laval Q1 net at Rs 30 cr

Alfa Laval (India) Ltd, manufacturing plants and equipment for food, chemical, and pharmaceutical industries and the Indian arm of the Swedish-based Alfa Laval Group, posted quarterly net profit of Rs 30 crore for the quarter ended June, an increase of 14 per cent over the corresponding period of the previous year.

The company clocked a turnover of Rs 208 crore, a growth of 7 per cent in the quarter as compared to Rs 194 crore in the corresponding period last year.

“This better performance was largely driven by the company’s concentrated focus on the profitability in the backdrop of the economic slowdown across all sectors of business,” Nish Patel, managing director, Alfa Laval, said.

The company’s total sales turnover for the half year ended in June 30, 2009 was Rs 406 crore, registering a double-digit growth over the corresponding period of the previous year. The net profit for the half-year ended June 30 increased by over 11 per cent to Rs 54 crore as compared to the net profit of Rs 49 crore for the corresponding period of the previous year. “This was mainly on account of a good growth in the process technology division,” Patel said.

In the last six months, 75 and 25 per cent of the total Rs 406 income came from domestic sales and exports respectively.

The process technology division manufactures centrifugal separators, decanters, spiral, brazed and plate heat exchangers, welded heart exchangers, dryers and evaporators which are used in refineries, petrochemicals, plastics and polymers, steel, metal, pulp and paper.
Patel said the potential of food industry and process industry shored up the company’s business during the first half of the year. While the food industry was expected to increase company’s business, there would be a rise in inquiries for ethanol plants both in the domestic and export market, he added.

“The company is doing well in vegetable oil refining business,” Patel said, adding that the company took a hit in brewery business with a big company defaulting the order for three years.

He said the company’s fruit processing business would grow with over 10 food mega parks coming up in the country. Each fruit processing plant with 50 – 100 ton capacity a day costs Rs 15 – 30 crore. Last year, the company completed three projects worth Rs 65 crore in this segment.

Patel said the company on hand had had orders to the tune of Rs 635 crore at the end of June 2009 which was 25 per cent higher than last year. And 50 per cent of this business would be in food processing segment. Only one book order worth Rs 10 crore in starch industry was cancelled, he added.

This year the company, employing 1300 staff, was investing Rs 27 crore in its plant and machinery up gradation, Patel said.

The company clocked total revenues of Rs 811 crore in the calendar year 2008.The net profit after tax for the year was Rs 91 crore.