P & G Board To Discuss Bonus Issue Tomorrow

The board of consumer products major Procter & Gamble (P&G) India will meet tomorrow to consider a bonus issue and discuss the companys audited annual results for the year ended June 30, 1997.

The Procter & Gamble scrip shot up yesterday on news of the proposed bonus issue. The scrip opened at Rs 860 and touched a high of Rs 979.75 before finally closing at Rs 946.

Procter & Gambles net sales rose to Rs 205.60 crore for the six months ended December, 1996, up 19.85 per cent over sales of Rs 171.55 crore during the corresponding period for the previous year. However, net profit declined by 6 per cent to Rs 14.25 crore from Rs 15.17 crore.

 

The companys bottomline was hit by increased expenses and an enhanced interest burden.

Expenses rose by 25 per cent to Rs 175.83 crore from Rs 140.55 crore, while interest costs shot up 33.82 per cent to Rs 3.68 crore from Rs 2.25 crore.

Depreciation charges also rose to Rs 5.86 crore from Rs 3.28 crore. Consequently, the companys profit before tax declined to Rs 22.60 crore.

However, the tax burden declined to Rs 8.35 crore from Rs 12.93 crore.