Burroughs Wellcome Net At Rs 9.5 Cr
Burroughs Wellcome (India) Ltd turned around in 1996 posting a net profit of Rs 9.54 crore against a loss of Rs 3.57 for the nine-month period in 1995.
The drug major, which is to merge into Glaxo India, notched up a sales growth of 27 per cent in 1996. Against an annualised figure of Rs 145.36 crore in 1995, the company posted sales of Rs 184.22 crore in 1996. Other income went up from an annualised figure of Rs 3.39 for last year to Rs 9.11 crore this year. The company's EPS is 10.4 and a final dividend of 25 per cent has been recommended taking total dividend for the year to 40 per cent.
The net profit for 1996 is after making a charge of Rs 11.03 crore towards the VRS offered last year. Other income also includes an income of Rs 3.5 crore from compensation for vacating the premises at Bank Street in Mumbai.
Burroughs Wellcome (India) also issued preferential shares to a subsidiary of Glaxo Wellcome plc on May 3, increasing its paid up equity capital from Rs 7.49 crore to Rs 9.17 crore.
Nishid Shah, analyst at Inquire Indian Equity Research said, the management touch of Glaxo effected a turnaround in the company's fortunes. The new management has changed credit terms to stockists, reducing products in the trading pipeline without affecting genuine sales at the retail level, he said. Besides, the company has resorted to pushing products through doctors rather than trade channels.
Working capital management was also improved to reduce the company's debt, said Shah. Burroughs also received large interest on investments it made during the year.