The net profit of pharmaceutical major Novartis India has more than doubled in the first half of 1998-99 to Rs 31.5 crore from Rs 15.4 crore the year before fuelled by higher sales and synergies of the Sandoz and Ciba merger. Sales have grown 17 per cent to Rs 390.5 crore from Rs 334.8 crore.
The company has also identified lower interest costs as a major contributor to the bottomline. Gross profit stood at Rs 56.6 crore, up 77 per cent from Rs 31.9 crore. Depreciation costs amounted to Rs 6.8 crore up from Rs 6.6 crore.
In addition, extraordinary expenses of Rs 7.3 crore on account of demerger and amalgamation were incurred in the first half of 1997-98.
A release said sales growth for all business sectors was satisfactory and the major businesses of pharmaceuticals and crop protection continued to account for 90 per cent of the total turnover.
Novartis India is a 51 per cent subsidiary of Novartis AG. It was formed in India by the merger of Sandoz India and Hindustan Ciba Geigy following the merger of the global parents. It has been positioned as a life sciences company and its business mix includes pharmaceuticals, agrochemicals, seeds, animal healthcare and optics.
In the past couple of years, the company has been integrating the operations of the two merged companies with initiatives like rationalising distribution and streamlining workforce.
The efforts are now beginning to bear fruit and are expected to translate fully into productivity gains by the end of the current fiscal.
