Sbch Net Profit Climbs 32% To Rs 62 Crore

Smithkline Beecham Cons-umer Healthcare (SBCH) has registered a 32 per cent increase in net profit, at Rs 62.02 crore for the year ended December 1997 compared to Rs 46.94 crore for the year ended December 1996.

Profits were recorded on a higher turnover of Rs 564.17 crore a jump of 14 per cent over Rs 496.58 crore in the previous year.

Continuing operations generated 22 per cent higher sales at Rs 563.5 crore compared to Rs 463.29 crore last year while discontinued operations were Rs 0.67 crore against Rs 33.29 crore last year.

According to a company release, discontinued operations relate to Eno, which was transferred to Smithkline Plcs wholly owned subsidiary SB Asia Pvt Ltd (SBAPL). Besides, trading operations in Crocin were discontinued as it was also transferred to SBAPL.

Other income rose by 23.5 per cent to Rs 15.92 compared to Rs 12.89 crore in the previous corresponding period.

Total expenditure went up by close to 14 per cent, to Rs 477.71 crore as against Rs 420.88 crore. Total expenditure includes payment made as royalty to the parent company on the use of the Horlicks brand name. According to a pharma analyst, royalty which was close to Rs 3.5 crore last year, has now gone up to Rs 18.5 crore.

Interest, net of interest received, was nil during this year compared to Rs 2.89 crore in the year ended December 1996.

Gross profit went up by 19 per cent, to Rs 102.38 crore as against Rs 85.7 crore.

While profit before tax stood at Rs 94.76 crore compared to Rs 79.31 crore, a Rs 32.68 crore provision was made for tax.

Analysts said the profitability should be higher in next year as price of Horlicks shot up by 10 per cent in January. The price of a 500 gm Horlicks bottle has rose from Rs 72 to Rs 80.

The companys equity increased to Rs 45.38 crore, from Rs 28.36 crore, after the issue of bonus shares in the ratio of 3:5.