A bad performance by the agro chemicals division has put pressure on Novartis' profitability in the second quarter of the current year. While turnover has slipped 8%, the net profit has crashed over 33%. The company has infact clarified that of its agribusiness contributed 53% of its turnover but 32% of its pre–tax profits for the first half of the current year.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
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Earnings per share*
The company has set in process a division of hiving of this business in line with the decision to do so by its international parent. This would improve the proftiability margins considerably. The demerger would be effected with retrospective effect from October 1, 2000 and the company plans to split its share to Rs 5 paid up value.
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