Leading ice-cream and frozen foods major Vadilal Industries Ltd has reported more than six times growth in net profit and a 10.2 per cent increase in sales in 2015-16, ended March 31, compared to the corresponding period last fiscal.

The company has also announced Rs 1.25 per share dividend for FY16.

Releasing the standalone highlights of annual results, the Gujarat-based company said its total income was Rs.444.5 crore (Rs.403.4 crore), while net profit stood at Rs.14.4 crore (Rs.1.9 crore), a jump of 647.5 per cent.

Rajesh Gandhi, Chairman and Managing Director, said the profit margins and profits were due to lower prices of major inputs for making ice-cream and reduction in interest outgo.

For the fourth quarter, ended March 31, however, the company posted a net loss of Rs 3.1 crore against a net loss of Rs 2.3 crore in the corresponding period of last year. Net sales in the fourth quarter were higher by 15.1 per cent at Rs 89.7 crore (Rs 78 crore).

“In the last few years, we had made large investments in capacity expansion as well as automation technology and these are now paying off.”

Devanshu Gandhi, Managing Director, said the company had recently signed up actor Parineeti Chopra as brand ambassador to give a youthful image to the company. This would lead to much greater recall among consumers and generate higher sales.

The company had, in recent years, been moving to premium category from regular and economy category as the former had higher margins.

“We are focusing on higher value products, accelerating new product development and increasing spend on promotional activities.”

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