India biz of MNCs performs well in first three months of 2009

Right from cement manufacturers to pharmaceutical companies to FMCG firms, many of the businesses of overseas entities having substantial presence in India have witnessed better results.

The two Indian group companies of Swiss cement maker Holcim— ACC and Ambuja Cements — have seen increased fourth quarter profits. Ironically, Holcim has posted a significant fall in net income for the first three months of this year.

Leading drug maker Merck India’s profits dropped about 47 per cent in the first three months whereas during the same period, its German parent Merck Group’s profits fell 75 per cent.

Meanwhile, FMCG entity  Hindustan Unilever has seen a marginal rise in its quarterly profits whereas its parent firm Unilever’s quarterly net income has decreased over 40 per cent.

Swiss cement firm Holcim’s two Indian Group companies — ACC and Ambuja Cement has posted good earnings in the first quarter of 2009. ACC posted Rs 399.34 crore in the first quarter ended March 31, 2009, while it had a net profit of Rs 324.3 crore in the year-ago period. In the same quarter, Ambuja Cement registered a 2.4 per cent growth in net profit at Rs 334.05 crore, while its total income rose 11.29 per cent at Rs 1,888.48 crore.

Holicm’s net income plunged 62 per cent to 195 million Swiss francs in the first three months of the year. Its net sales skid 17.9 per cent to 4.5 billion Swiss francs, while sales from its two Indian group firms have increased. “The two Indian Group companies ACC and Ambuja Cements increased their sales of cement significantly in all areas... the Group companies benefited from rural housebuilding and the government’s economic stimulus program,” Holcim had said.

Merck Ltd has reported a profit of Rs 8.6 crore in the first three months of this year, a fall of 47 per cent against the corresponding period a year ago. In the comparable period, the same stood at Rs 16.18 crore.

However, its parent entity Germany’s Merck Group saw its profit after tax decline 75 per cent to 60.2 million euros. The same stood at 243 million euros in the year-ago period.FMCG company Hindustan Unilever reported a 2 per cent jump in profit at Rs 394.99 crore in the fourth quarter ended March 31, 2009. Anglo-Dutch parent firm Unilever’s profit fell 43 per cent at 803 million euros in the latest quarter.

Meanwhile, car maker Maruti Suzuki India’s profits dropped 18.33 per cent at Rs 243.13 crore in the first three months of 2009, while during the same period its Japanese parent firm Suzuki’s profit was down 27 per cent.