Hmr Posts Rs 20-Crore Net Profit

Hoechst Marion Roussel Ltd (HMRL) has posted a 14.5 per cent rise in turnover and almost a 20 per cent increase in net profit in 96-97.

The company has declared a 40 per cent dividend and EPS (adjusted for one time charges) has gone up to Rs 11.2 from Rs 10.5 last year.

HMRL recorded a turnover of Rs 386.9 crore compared with Rs 337.92 crore in 95-96. Net profit went up from Rs 16.92 crore last year to Rs 20.26 crore. Gross profit is higher by 17 per cent, from Rs 48.34 crore to Rs 56.52 crore in 96-97.

 

Other income too rose by 28 per cent from Rs 11.23 crore to Rs 14.41 crore.

According to analysts, this includes rental income obtained by leasing out a part of the Hoechst house premises at Mumbai.

Total expenditure is up almost by 15 per cent, from Rs 300.81 crore to Rs 344.79 crore. The expenditure includes Rs 7.60 crore spent on VRS effected at the head office and Mulund factory.

Interest was almost stable at Rs 10.66 crore as compared to Rs 10.48 crore last year. The company has provided Rs 14 crore as this year's tax liability while Rs 0.86 crore is the provision for prior year's tax.

"The results are not as good as expected. In fact operating profit margins have come down from 14.44 per cent to 12.85 per cent. If sales are adjusted for the transfer of animal health business, growth in pharma has been 21 per cent", says Nishid Shah, head at Inquire Equity Research.

"The fall in operating margins is due to price control, suspension of Baralgan production and introduction of new products like Rifater and Rifadin INH for TB and Insuman, which is human insulin", he adds.

Meanwhile, Hoechst Schering AgrEvo Ltd recorded a 16 per cent rise in sales, with the turnover reaching Rs 218 crore in 96-97.

Net profit jumped up by 47.5 per cent, from Rs 8 crore to Rs 11.8 crore.

The company's EPS has gone up from Rs 17.4 to Rs 25.7 and a 50 per cent dividend has been declared.

Profit before tax increased by 46 per cent from Rs 13.5 crore to Rs 19.7 crore.