MUMBAI, June 25: Novartis India, the company formed by the merger of Hindustan Ciba-Geigy and Sandoz India, has reported a 106 per cent jump in net profit for the year ended March 31, 1998 at Rs 38.3 crore as against Rs 18.6 crore recorded in the previous year.The board has recommended an increased dividend of Rs 4 per equity share as against Rs 3.2 per share in the previous year. Sales grew nine per cent to touch Rs 663 crore compared with Rs 607.2 crore in the previous year.
Improved profitability reflects synergies realised from integration of all business operations. Lower working capital levels and optimal financing arrangements led to reduced borrowings and lower interest costs of Rs 9.6 crore as against Rs 17.2 crore in the previous year.
Additionally, restructuring costs in this year were lower at Rs 12.4 crore as against Rs 19.9 crore in the previous year. Profit before tax grew by 85 per cent to Rs 65.7 crore against Rs 35.4 crore in the previous year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
