Biskoot Slowdown? Parle Biscuits Net Profit Up 15 Per Cent in FY19; Revenue Rise 6.4 Per Cent To Rs 9,030 Crore

Parle Products Pvt Ltd, a leading biscuit maker, saw its net profit rises 15% in FY19 and revenue up 6.4% to Rs 9,030 cr, Business Standard reported.

The company’s total revenue grew at a reasonably healthy 6.4 per cent YoY to Rs 9,030 crore, with revenue from operations alone registering a nearly 6 per cent to Rs 8,780 crore from the previous year. Other income posted a 26 per cent increase to Rs 250 crore in FY19 who aided its top line growth.

The company was recently in the eye of a storm with reports that it was planning lay off up to 10,000 workers and effect production cuts due to slowing economic growth and dwindling demand in the rural hinterland.

Days later the company representatives denied reports of cutting 10,000 workers due to slow economic growth, lower demand and production cuts. "The news about 8,000 to 10,000 job losses at Parle G is not a factual story," said Mayank Shah, Senior Category Head at Parle.

The company founded in 1929, employs about 100,000 people, including direct and contract workers across 10 company-owned facilities and 125 contract manufacturing plants.

In a widely reported story in August, a senior executive of the company was quoted as saying that iconic brands such as Parle-G had faced the brunt of nationwide goods and services tax (GST) in 2017, which imposed a levy on biscuits costing as low as 5 rupees, or 7 cents a pack. The company was losing out to unorganized players.

The company along with other top biscuit manufacturers have been repeatedly demanding the government for a goods and services tax (GST) cut.