Merck Ltd, a major MNC belonging to Merck, Germany, has pushed its net profit by 16.5 per cent during the third quarter ended September 2004 to Rs 20.15 crore from Rs 17.29 crore in the corresponding period of last year. The rise in profit is mainly due to lower depreciation, zero interest burden and lower staff cost. Further the company has not provided any amount for VRS in the quarter under review as against Rs 2.32 crore in the previous period.

Its gross sales increased only by 3.6 per cent to Rs 111.25 crore from Rs 107.38 crore. The sales of pharmaceuticals increased to Rs 62.81 crore during the quarter from Rs 60.24 crore. The earning per share improved to Rs 11.95 from Rs 10.25 in the similar period of last year.

The company's sales for the first nine months ended September 2004 touched to Rs 310.42 crore from Rs 297.87 crore in the corresponding period of last year. The net sales after providing for excise duty worked out to Rs 281.95 crore as against Rs 271.15 crore. Its net profit has taken a quantum jump of 38.5 per cent to Rs 52.74 crore from Rs 38.08 crore in the previous period. This is mainly due to change in the provision for VRS and related expenses. It has charged off entire expenditure on VRS immediately on incurrance. Due to this change, its net profit for the nine months period ended September 2004 is stated higher by Rs 18.71 crore.