Nicholas Piramal India Ltd. (NPIL) has reported strong growth in sales and operating profits for Quarter III (2002-03). Gross sales grew by 20.4 per cent (Rs. 2,627.9 mn) against the corresponding quarter for the previous financial year, while operating margins up from 17.2 per cent in F02 to 20.3 per cent for April-Dec. 2002. Profit before tax was up 48 per cent (Rs. 308.4 mn) against the same period for 2001-02.
"Nicholas Piramal has bucked industry trends - we're growing organically and demonstrating value for our shareholders. Our EPS for the nine months period April-December 2002 is up 72.6 per cent (Rs. 20.66), clearly showing how we've managed to add value through both acquisitions and organic growth," said Ajay Piramal, the Company's Chairman.
For Q III formulations grew at 23.4 per cent (sales Rs. 2079.5 mn) over the corresponding period in the previous year. During the quarter the company has launched 3 new products - Vah (valdecoxib) in the NSAIDS category, Largactil (chlorpromazine) and Valance (divalproex) in the CNS category. The Company's diagnostics division has introduced a new glucose-monitoring instrument "Accucheck Active" and three new reagents in the infectious immunology segment.
The company's formulations business has now launched 11 new products in 2002-03. Products launched since April 2001 form 10.3 per cent of the company's formulation sales for the period April-December 2002. Continuing its emphasis on sales and brand management excellence, the company increased its field force from 1794 (31st March 2002) to 1903. The formulations business contributed to 80 per cent of total sales, growing at 23.7 per cent for the nine months ended December 31, 2002.
For the nine months ended December 31, 2002, net sales grew 17.2 per cent (Rs. 6970.3 mn). Operating profits were up to Rs. 1,412.3 mn for the period April-December 2002 against Rs. 1,128.4 mn for the corresponding period in the previous year. Operating margins (as a per cent of total operating income) for the nine months ended December 2002 improved to 20.0 per cent form 17.2 per cent for F02. Profit Before Tax was up 68 per cent (Rs. 1230.8 mn) over the corresponding period for the previous year. Net Profit was up by 72.6 per cent (Rs. 784.9 mn).
During the period April-December 2002, the company continued to stress on cost management reducing material costs (2.4 per cent) and staff costs (0.7 per cent) (as a per cent of total operating income) compared to the corresponding period in the previous year.
On a consolidated basis gross sales (Rs. 12071.4mn) for NPIL together with its JV and alliances grew by 18.2 per cent while PAT was up 73.6 per cent (Rs. 946 mn) for the period April-December 2002. On a consolidated basis EPS was Rs. 23.56 for the nine months period (up by 222 per cent).