The Hindu Business Line : Novartis Q4 net up, to pay 200 pc

PHARMA major Novartis India Ltd has clocked a net profit of Rs 20.87 crore for the quarter ended March 31, 2004, as compared to Rs 1.32 crore for the corresponding quarter in the previous year. Total income has increased to Rs 123.36 crore (Rs 87.25 crore) in the quarter ended March 31, 2004.

Its board has recommended a dividend of 200 per cent, at Rs 10 per equity share of Rs 5 each.

The company posted a net profit of Rs 113.76 crore in the year ended March 31, 2004, as compared to Rs 62 crore in the year ended March 31, 2003. Total income increased to Rs 563.06 crore (Rs 513.09 crore).

The pharma sector was a key contributor to profits, which were augmented by a sum of Rs 14 crore towards reversal of provisions made for wealth tax in previous years, a company communiqué said. Pharma sales for the period closed at Rs 310 crore, registering a growth of 6.2 per cent over the previous period. The company attributed the higher revenues to higher sales and improved margins.

In the period under review, Novartis became the first pharma company in India to receive Exclusive Marketing Rights (EMR) for its blood cancer drug Glivec.

The company's generics business registered a loss of Rs 0.4 crore despite sales of Rs 109 crore, representing 9.8 per cent increase over the comparable period, the company said.

Sales growth came primarily due to the company being awarded the World Bank-funded tender for supply ofabti-TB products to the Government for its Directly Observed Treatment Short-term (DOTS) programme. The company has executed deliveries of Rs 11 crore towards this tender during the period. The entire project is about Rs 21 crore.

Meanwhile, the Rifampicin market has been facing severe operational challenges, due to surplus capacities, cheaper import and falling domestic prices, the company said.

Further, it added that the company did not expect any significant change in the scenario. Given this situation, the company has "impaired assets of its Mahad facility in line with Accounting Standard 28 for impairment of Assets. The resulting loss of Rs 65 crore has been adjusted against opening reserve."

The over-the-counter (OTC) business recorded sales of Rs 47 crore, a growth of 17.1 per cent over the previous period. The launch of Calcium Sandoz Growth was another contributor to sales, it said.