The company has attributed the increased in net profit to reduced interest costs following the prepayment of long term debt after the recent rights issue.

In a statement here to announce the results, Bausch and Lomb managing director Jaspal S Bajwa said: "With a number of new products slated to be launched well in time for festival season and 1999 spring season, we are well prepared to believe the planned results in 1998-99 notwithstanding the continuing economic slowdown." He added that the recent significant increase in the excise duty incidence in sunglasses will indeed increase the burden on bottom-line.

INSIGHT
Promotional schemes help sales

Bausch & Lomb's promotional schemes seemto have given a boost to its sales, which have risen 33 per cent over. As a result, though the company has kept its expenses under control, its operating margin has fallen from 19.18 per cent to 16.61 per cent. Financial restructuring undertaken by the company has enabled it to cut interest costs by over 85 per cent. Therefore, despite the drop in operating margin, cash margin has improved from 15.22 per cent to 17.03 per cent.

With the increased thrust on product promotion continuing to generate better volumes in a depressed market and the additional burden of higher excise duty, Bausch & Lomb may see its operating margin drop further. However, better marketing efforts should see the absolute sales and profit figures rising. The company has launched five new ranges -- Rituals, an exclusive women's range of sunglasses, Airboss, Mondo Metals, Asphalt and Cross Walk -- for the year. These products, priced between Rs 1,800 and Rs 3,500, are being promoted as "sunglasses made of hand-made plastic and metalframes" and are expected to generate significant revenues.