Sales grew 9.8 per cent to Rs 117.76 crore during the period, against Rs 107.19 crore last year.

Operating profit rose 27.5 per cent to Rs 23.79 during the period from Rs 18.66 crore in the corresponding period last year. Gross profit at Rs 22.87 crore registered a 34 per cent rise from Rs 17.07 crore last year.

Operating profit margins increased to 20.20 per cent from 17.4 per cent last year. Net profit margins rose to 12.04 per cent from 10.07 per cent.

Interest charges dropped to Rs 1.04 crore from Rs 1.85 crore last year. Depreciation was higher at Rs 5.66 crore, as compared with Rs 3.58 crore in the same period last year. Provision for taxation increased to Rs 3.03 crore from Rs 2.69 crore.

Commenting on the first quarter performance, Procter & Gamble Indiachairman and managing director Bharat V Patel said: "The company has registered impressive results in the first quarter primarily due to a continued strong performance of out health-care business. Innovative marketing initiatives such as Vicks `mega-branding' and strong advertising, supported by a good monsoon and effective steps to control costs and efficiencies have led this profit growth.

Procter & Gamble India Ltd is changing its name to Procter & Gamble Hygiene and Health Care Ltd to reflect the company's identification with its core business categories of feminine hygiene and health care, in which its leading brands are Whisper and Vicks.

Procter & Gamble India is a subsidiary of Procter & Gamble Company of USA which owns 65 per cent in the Indian company.

INSIGHT
Revenue growth disappoints

The change in name to Procter & Gamble Hygiene and Health Care, clearly reflects the managements perception of what the company's core businesses and strengths are. However the single digitrevenue growth of 9.86 per cent to Rs 117.76 crore has disappointed. Especially since analysts state that the growth has largely been achieved in value terms through price hikes undertaken last year. Accordingly, operating margins jumped from 17.41 per cent to 20.20 per cent.

The bottomline has been aided by efficient tax management and stringent cost control measures. Interest costs which had risen last year have dipped 43.78 per cent to Rs 1.04 crore, owing to a reduction in inventory levels and prudent working capital management. Interest costs can come down further as most of P&G's capex has already been incurred and a substantial portion of its future cash flows will be used to repay borrowings. P&G is expected to have a low tax liability for another two years because of the Rs 100 crore expansion, a major part of which is being done at Goa and enjoys a 5-year tax holiday. Thus net profits stood at Rs 14.18 crore, up 31.3 per cent from Rs 10.80 crore last year.

P&G's strategy for the future aims atbuilding leadership brands driven by innovative technologies, with products like Vicks and Whisper leading the charge.

Rhone-Poulenc H1 net zooms to Rs 14 crore: The Mumbai-based Rhone-Poulenc has posted a 103 per cent surge in net profit to Rs 13.83 crore in the first half of the current fiscal, as compared with Rs 6.8 crore for the corresponding period last year. Net sales increased from Rs 77.95 crore to Rs 101.54 crore. The company has maintained the pace set in the first quarter.

The company has written back Rs 13.69 crore as prior years adjustment. About Rs 12.97 crore was written back as the company reverted to calculating depreciation on historical costs. The balance was adjusted as the company shifted to a straight line method of accounting for depreciation. The adjustment was offset against an expenditure of Rs 10.79 crore on the VRS. Exluding these two items the company made a net profit of Rs 10.93 crore.

While other income has increased marginally to Rs 3.43 crore, expenditure hasincreased from Rs 69.16 crore in the first half last year to Rs 89.02 crore in the current half. Interest cost has risen sharply from Rs 19 lakh last year to Rs 28 lakh. Depreciation has declined sharply from Rs 1.57 crore to Rs 87 lakh.

Colour Chem H1 net up 10%: Colour Chem has reported a 10 per cent increase in net profit to Rs 14.03 crore in the first half of the current fiscal, against Rs 12.76 crore for the corresponding period last year. There has been a marginal decline in net sales from Rs 169.91 crore in the first half last year to Rs 166.59 crore in the current half. However, excluding the sale of textile dyes last year, on a comparable basis, net sales have increased by 19 per cent. In the last year turnover from the textile dyes business was about Rs 30 crore.

Other income rose to Rs 7.85 crore, from the Rs 6.41 crore for the same period last year. However, total expenditure has declined from Rs 149.73 crore to Rs 145.81 crore. Interest cost was higher at Rs 4.68 crore compared to Rs4.58 crore for the first half last year. Depreciation too has increased from Rs 5.25 crore to Rs 5.42 crore.

In the first half of last year the company had earned an extraordinary income of Rs 19.18 lakhs from the sale of the textile dyes business to Dystar India.

Sun Pharma net up a shade: Sun Pharmaceutical Industries has reported a 2 per cent increase in net profit to Rs 26.67 crore in the first half of the current fiscal, against Rs 26.16 crore for the corresponding period last year. Sales increased 12 per cent from Rs 136.68 crore in the first half last year to Rs 152.84 crore in the current half.

Exports have grown at a faster clip of 42 per cent to Rs 25.41 crore, from Rs 17.94 crore, compared to domestic sales which increased from Rs 118.74 crore to Rs 127.43 crore, up 7 per cent. Total exports (including those of the subsidiary) have increased by 68 per cent to Rs 37 crore. The company almost doubled its exports to Latin America and Europe, notching up Rs 24.65 crore in sales.

Acompany release said, the low net profit reflects the creation of a wholly owned export subsidiary and deployment of funds in the pharma industry. As a result of this share of profit from the export division amounted to Rs 1.16 crore, against Rs 4.5 crore last year, down 74 per cent. Also net interest income declined by 83 per cent from Rs 1.87 crore to Rs 0.37 crore. Managing director Dilip Singhvi said, "The first half result reflect a qualitative improvement in the income stream which is now structured entirely around the pharma business.

While depreciation has increased from Rs 2.55 crore in the first half of the last fiscal to Rs 3.42 crore, up 34 per cent, expenditure has increased 8 per cent from Rs 114.59 crore to Rs 124.27 crore in the first half of the current fiscal.