A company release on Thursday said, interest was up marginally to Rs 1.8 crore from Rs 1.6 crore. Total expenditure was Rs 252.68 crore, against Rs 213.80 crore. Depreciation was higher at Rs 5.1 crore, against Rs 4 crore. Provision for taxation rose to Rs 19 crore from Rs 14 crore.

INSIGHT
Higher exports prop up operating margins

Higher exports in the second quarter pushed up Cipla's operating margins from 19.5 per cent in the second quarter of 1997-98, to 23.9 per cent in the second quarter of this fiscal year. The total exports in the first half rose by 75 per cent to Rs 51 crore, resulting in the impressive margins for the company. Newerdrugs i.e. anti-aids drugs lamivudine and other drugs introduced in this quarter have not yet given significant realisations for the company. Also, in all other formulations the company has not done well.

In addition, with the ministry of commerce and law maintaining a silence on notification of ban of exports under the Drug and Cosmetics Act, Cipla should not face any problems for exports of Sildenafil Citrate, the bulk drug for manufacturing Viagra. The good performance has also been reflected in the stock market, where the scrip has comprehensively beaten the Sensex.

Ceat H1 net up: Ceat Ltd, the RPG group tyre flagship, has posted a net profit of Rs 6.08 crore, up from Rs 4.74 crore, for the first six months of the current financial year. Gross sales and operating income declined to Rs 577.17 crore from Rs 582.8 crore in the same period last year. Other income was lower at Rs 22.64 crore against Rs 31.84 crore in the first half of 1997-98.

Gross profit after interest, but before depreciation,taxation and extra-ordinary items, increased to Rs 19.68 crore from Rs 11.78 crore. Interest burden dropped from Rs 55.31 crore to Rs 51.17 crore.

Net profit before taxation was at Rs 6.56 crore, up from Rs 5.3 crore in the first half of last year. It paid a lower tax at Rs 48 crore as against Rs 56 crore last year. The company provided depreciation of Rs 6.83 crore, against Rs 6.48 crore last year.