Parle Biscuits, owned by the Parle Group has registered a 15.2 % year-on-year growth in net profit for the financial year 2018-19. As per a report in Business Standard, business platform Tofler has reported that Parle Biscuits’ net profit for FY19 is at Rs 410 crores.
Parle was also one of the biscuit manufacturers in India who had earlier asked the government for a cut in GST rates. As per the report, Parle had recorded a 315 crores profit in the last financial year. With this fiscal year’s profits, they have seen a jump of 15.5%.
The total revenues of the company have grown 6.4% year on year to a total of 9030 crores. The revenue from operations alone have grown nearly 6 per cent to Rs 8,780 crore from the previous year and other incomes have jumped 26 per cent to Rs 250 crore in the current fiscal year.
It is notable here that in August, many news reports had indicated that Parle may have to lay off thousands of employees due to slow growth and falling demands for entry-level biscuits, especially after the announcement of 18% GST rates for biscuits.
There was also an outrage by some sections in social media over the reports of job losses, blaming the nation’s economy for Parle Biscuit’s ‘fate’ but Parle’s senior category head Mayank Shah had clarified that there have been no job losses at Parle yet and that the issue has been blown out of proportion by naysayers.
Shah had, however, stated that the 18% GST slab is hurting the Biscuit brands below Rs 100.
Dismissing the reports of downsizing at Parle Products, Shah had said that the job losses will be an eventuality if the sales of the basic biscuits category continue to decline. Once the category which used to grow at 10-12 per cent per annum is currently declined by 7-8 per cent.