Merck Ltd has posted a net profit of Rs 9.63 crore for the first quarter ended March 31, 2002 as compared to Rs 6.69 crore for the quarter ended March 31, 2001. The total income has increased from Rs 73.07 crore in the quarter ended March 31, 2001 to Rs 81.29 million in the quarter ended March 31, 2002.
Merck Ltd has posted satisfactory growth in turnover and operating margins in the first quarter of 2001-2002. One of the positive aspects of this quarter is the improvement in the turnover and working results of the pharma segment. Not only has the domestic turnover but also the export turnover has grown as per its expectations. Overall the pharma turnover has grown 13% over last year's first quarter turnover.
In the chemicals segment, the Analytics and Reagents division has shown a healthy growth in turnover and profit before tax. However the Vitamin E and Pigments division have not grown in turnover as per the company's targets. Overall the chemicals segment has grown by 5%, which is less than the targeted growth.
The company hopes to achieve the planned turnover and profit in the remaining nine months.
During the quarter, the company announced a Voluntary Retirement Scheme (VRS) for the employees working in the manufacturing plant at Taloja. The company received a very good response and about 163 employees opted for the scheme. The company spent around Rs 16.4 crore for this purpose. This amount will be amortized over a period of five years in the profit & loss account. With the implementation of the voluntary retirement scheme, the total number of employees at the end of March 2002 was 1407.
The company will be able to roll out the SAP system by June this year.