Novartis India has posted a net profit of Rs 526 m for FY01 as against Rs 1,034 m for FY00. However, the figures for the year are not comparable as the company demerged its agrochemical business, which resulted in this sharp decline in turnover and profits. Again, in the current year, the management also decided to exit the lens and lens care business of CibaVision with effect from December 2000. This is based on the ground that the business did not reach a critical mass within a reasonable period of time.
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The company has announced the launch of four brands in the current year across different therapeutic segments. However, it appears that the company’s top brand Voveran (an anti–inflammatory), and Sandimune Neoral (immuno-suppresant) have recorded lower than expected growth.
At the current market price of Rs 231, the stock is trading at a P/e of 14 times its FY01 earnings. Growth in future depends on success of its new products in the market place.
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