Novartis India, a Rs.845 crore MNC from Mumbai, has posted net profit of Rs.103.82 crore in the second quarter ended September 2015 from Rs.14.04 crore mainly due to receipt of the sale consideration in relation to the slump sale of the OTC division to GSK Consumer Healthcare Pvt Ltd amounting to Rs.109.70 crore. The company has not accounted Rs.86.70 crore in respect of slump sale of Animal division to Elanco India (affiliate of Lilly) due to pending approvals. Net profit from the sale o the OTC division and costs incurred by the company in relation of these transactions have been shown under extraordinary items. With improvement in profits, EPS worked out to Rs.32.48 as against Rs.4.39 in the last period.
Its net sales declined by 5.4 per cent to Rs.215.44 crore from Rs.227.83 crore. Its pharmaceutical sales increased by 5.3 per cent to Rs.163.44 crore from Rs.155.24 crore and that of generics moved up by 1.6 per cent to Rs.13.72 crore from Rs.13.50 crore. However, the sales of OTC division declined by 54.1 per cent to Rs.19.37 crore from Rs.42.21 crore. The sales of animal health division moved up 17 per cent to Rs.27.90 crore from Rs.23.84 crore.
For the first half ended September 2015, Novartis' net profit increased to Rs.117.27 crore from Rs.28.35 crore in the similar period of last year basically due to extraordinary income of Rs.84.63 crore arose from sales of the OTC division. Its net sales increased marginally to Rs.431.43 crore from Rs.429.89 crore.