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Our Corporate Bureau
Mumbai, Aug 22: Procter & Gamble (P&G) India on Saturday announced a 31.6 per cent rise in its net profit to Rs 43.18 crore for the year ended June 1998, against Rs 32.8 crore reported last year. Net sales rose 13.7 per cent to Rs 440.68 crore during the year from Rs 387.58 crore last year. The board of directors has recommended a dividend of Rs 7.5 per share on an enhanced capital of Rs 21.64 crore.
The audited financial results show an export growth of 43 per cent over the previous year to Rs 21.5 crore. Other income was lower at Rs 7.8 crore, compared with Rs 9.49 crore last year.
Operating profit increased 17.04 per cent to Rs 74.84 crore from Rs 63.94 crore last year. Operating profit margins were almost at the same level at 16.98 per cent. Net profit margins, however, increased to 9.79 per cent from 8.46 per cent.
Interest charges at Rs 6.47 crore were lower, compared with Rs 7.94 crore in the previous year. Depreciation, too, was lower at Rs 22.75 crore, against Rs 25.65 crore last year. Mumbai, Aug 22: Procter & Gamble (P&G) India on Saturday announced a 31.6 per cent rise in its net profit to Rs 43.18 crore for the year ended June 1998, against Rs 32.8 crore reported last year. Net sales rose 13.7 per cent to Rs 440.68 crore during the year from Rs 387.58 crore last year. The board of directors has recommended a dividend of Rs 7.5 per share on an enhanced capital of Rs 21.64 crore.
The audited financial results show an export growth of 43 per cent over the previous year to Rs 21.5 crore. Other income was lower at Rs 7.8 crore, compared with Rs 9.49 crore last year.
Operating profit increased 17.04 per cent to Rs 74.84 crore from Rs 63.94 crore last year. Operating profit margins were almost at the same level at 16.98 per cent. Net profit margins, however, increased to 9.79 per cent from 8.46 per cent.
Interest charges at Rs 6.47 crore were lower, compared with Rs 7.94 crore in the previous year. Depreciation, too, was lower at Rs 22.75 crore, against Rs 25.65 crore last year.Provision for taxation increased to Rs 10.24 crore from Rs 7.04 crore. Earnings per share is Rs 19.96 per share.
On the performance, chairman and managing director Bharat V Patel said: "The core business categories of healthcare and feminine hygiene grew by 16 per cent and 6 per cent in sales respectively." He, however, added a word of caution with respect to the economic slowdown by saying, "While the company has consistently delivered strong sales and profit growth in preceding years, an economic slowdown is being witnessed in 1998. Lower consumer spending and competitive response is likely to put pressure on margins and profitability of the company." P&G manufactures and markets leading brands including the Vicks range of cough and cold medicines and Whisper feminine hygiene products.
Reserves grew by 12.9 per cent to Rs 157.72 crore, against Rs 139.6 crore last year.
Procter & Gamble offers VRS
In India, Procter & Gamble (P&G) is streamlining its structure by offering a voluntary retirementscheme (VRS) to some of its employees. The voluntary retirement scheme opened on August 20. The move is aimed at meeting certain challenges and to leverage on opportunities to accelerate growth, the company said. This is expected to speed up marketing of its products and to make them available to the Indian consumer faster.
The company said that the affected employees would continue to hold till maturity of the Stock Appreciation Rights for 100 shares that The Procter & Gamble Company, USA, recently granted to all its employees world-wide.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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