BLUE Power Limited has posted a 77.3 per cent increase in net profit for the second quarter ended October 31, 2010, resulting in a gain of $3.7 million over the corresponding second quarter of 2009.

The company listed on the Junior Stock Exchange on April 22 this year, making it eligible for a 10-year tax break, the last five years of which it will be taxed at 50 per cent of the corporate tax rate.

Without accounting for the $2.4-million difference in taxes, the company’s results actually improved 18 per cent or $1.3 million over the prior year’s quarter.

Revenues from the manufacture and sale of laundry soaps and the sale of lumber, hardware supplies and related products increased by $28 million over the corresponding period of 2009. Profit from operations improved by $2 million.

And while administrative and other expenses increased 21 per cent to $23.6 million, it was less than the $29.6 million and $10.3 million for staff salaries and bonuses respectively that were provisioned at the end of April this year.

Dhiru Tanna, chairman of Blue Power, said at the time that the rationalisation of salaries for senior management reflected market conditions and the appropriate incentive to maintain performance. At the time, first-quarter results declined 19 per cent following what was then a 40 per cent increase in administrative expenses.

There was also a significant decline in interest income, with a drop from $1.3 million in 2009 to $223,181 in 2010 reflecting a change of 83 per cent. Overall, the results for other income — which comprises interest income, rental income, exchange gains and other income — declined 49 per cent over prior year’s quarter.