ICI India posts $41m profit on adhesives divesture

20 January 2009 16:22  [Source: ICIS news]

NEW DELHI (ICIS news)--ICI India has reported a third-quarter profit of rupees (Rs) 2.05bn ($41.3m) on the divesture of its adhesives business to the Indian arm of Germany’s Henkel Group, the company said on Tuesday.

“The results for the quarter are not comparable with the previous year because of divestment of the adhesives business in early 2008,” said a company statement.

ICI India said it had not reflected the performance of its adhesives business in its results since the divestment.

The exceptional income helped the company boost its third-quarter net profit to Rs1.74bn compared with Rs63.7m a year ago.

The company accounted for the transaction during the third quarter following required approvals.

The divesture resulted in an 8.59% decline in third-quarter net sales to Rs2.34bn from Rs2.56bn in the previous year.

Operating profit decreased by 13.5% to Rs282.4m from Rs326.5m.

Sales from continuing businesses grew 5% compared with the previous financial year, the company said.

Profit from continuing businesses was at the same level as the previous year, the company said.

($1 = Rs48.53)

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By: Naresh Minocha
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