Hitachi Home & Life back in black in Q4

AHMEDABAD: Hitachi Home & Life Solutions (India) Ltd has come back into the black in the fourth quarter of fiscal 2003-04 ended March 31, 2004 with net profits of Rs 2 crore on a 12 per cent increase in sales over the same quarter of last fiscal.
For the fiscal, HHLI has cut losses from Rs 32 crore to less than Rs 6 crore. Inspite of a 4 per cent rise in turnover, the company has increased its profit before depreciation, interest and taxation from a negative of Rs 21 crore to a positive of Rs 5.5 crore.
According to the company, the performance has been enhanced by a sharp reduction in overhead costs by more than 30 per cent and manpower costs by 12 per cent.
Akira Kamitani, managing director, HHLI, in a statement, said that though the company had booked losses for the fiscal, it was on its way to becoming a stable and profitable player in the market. “The various initiatives taken over the past year and support from the Japanese parent has seen a quick rise in HHLI in the international markets,� Kamitani said.
According to an HHLI spokesperson, Hitachi’s two-pronged strategy of becoming a total air-conditioner solutions provider and exiting from the mass market by withdrawing the Amtrex brand had worked.
As part of its cost overhaul strategy, HHLI has not only merged its corporate offices with its factory to synergise operations, it has also set up new facilities in Jammu and Parwanoo in Himachal Pradesh to serve the north markets in the shortest response time. HHLI has also merged its manufacturing facilities in Kadi and Silvassa for better efficiency and utilisation of resources.