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Pfizer pre–tax profit shoots up 70%

Mar 13, 2000

Pfizer has reported excellent results for the first quarter ended February 2000. Income from operations has jumped 12% bucking the trend in the pharmaceutical industry, which has been growing at 7–8%. The company has delivered topline growth despite Becousules being brought under price control, which implies that now almost 45% of the revenue of Pfizer the company accrues from price control. In India six brands viz. Becousules, Lorex, Protinex, Dolonex, Terramycin and Minipress XL account for 80% of the company’s sales.

(Rs m) 1QFY1999 1QFY2000 Change
Sales 707.3 790.3 11.7%
Other Income 15.0 19.0 26.7%
Expenditure 639.3 683.2 6.9%
Operating Profit (EBDIT) 83.0 126.1 51.9%
Operating Profit Margin (%) 12% 16%  
Interest 0.2 1.0 400.0%
Depreciation 17.6 12.7 -27.8%
Profit before Tax 65.6 112.4 71.3%
Extraordinary item      
Tax 24.6 46.5 89.0%
Profit after Tax/(Loss) 41.0 65.9 60.7%
Net profit margin (%) 5.8% 8.3%  

On the expenditure side, the company has made an extra provision of Rs 7 million, which is on account of amortisation of the compensation paid under Voluntary Retirement Scheme (VRS). The operating profit margins has increased from around 12% to 16% and pretax profits have grown 70%.

The sweetener is the 1:1 bonus declared by the company, which seems to be intended to assuage the minority shareholders who have been upset ever since the company got a permission for setting up a 100% subsidiary.

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