Packaging major Essel Propack posted 41.3 per cent jump in its consolidated net profit at Rs 42.9 crore for the quarter ended December 31, 2015 as compared to Rs 30.4 crore for the corresponding quarter previous year.
Total income from operation, however, recorded a marginal 9 per cent decline at Rs 513.4 crore for the third quarter of the financial year 2015-16 as against Rs 567.4 crore for the comparable quarter last year.
“Revenue growth over previous year was impacted mainly by sluggish economy resulting into lower rural demand, reduced new launches in cosmetics, offtake issues in pharma sales in India and lower than planned offtake by key customers in Egypt,” said a statement.
Despite weak economic sentiment, European markets witnessed a 14 per cent growth in the revenue of Essel Propack for the third quarter of the current financial year. Europe contributed to Rs 97.3 crore in the revenue of the company for October – December quarter of 2015 as compared to Rs 85.3 crore for the corresponding quarter last year.
The company has added a new line to debottleneck capacity and to make head-space for further growth in non-oral care. Europe continues to be a promising market and is being watched for new growth opportunities. Europe contributes around 18 per cent of Essel’s revenue.
Sales from the US market, however, remained unchanged at Rs 112.5 crore. Americas contribute nearly 20 per cent of the company’s revenue.