However, since the company had spun off its flaconnage and bulk drugs divisions into separate subsidiaries, effective April 1, 1998, the results are not strictly comparable. For the first nine months of the year, sales rose 15 per cent to touch Rs 313.70 crore and net profit increased 17 per cent to touch Rs 30.03 crore.

Other income for the third quarter ended December 31, 1998 (post-spinoff) was Rs 70 lakh, while depreciation and interest were Rs 2.62 crore and Rs 2.47 crore.

Sales of Nicholas Piramal, its subsidiaries and joint-venture companies amounted to Rs 752.5 crore in the first nine months. Sales of Reckitt Piramal stood at Rs 215 crore, Sarabhai Piramal at Rs 45 crore,Gujarat Glass at Rs 130 crore and others at Rs 18 crore, all ahead of plan, a company release said. The group was also successful in accelerating the momentum of its strategic alliances with LaPorte Piramal in Hyderabad and Boots Piramal in Mumbai.

Nicholas Piramal chairman Ajay Piramal said, "With healthcare group sales at Rs 752.5 crore in the first nine months, we are on track to cross the Rs 1,000-crore milestone this year. The combination of strategic alliances and our new R&D initiative at Mumbai, positions us strongly to meet the challenges of the emerging IPR milieu."

The company also launched nine new products in the first nine months including Recormon (Erythropoeitin beta), Accutrend, Amexyl, Syntaris, Orthobid gel and suspension, IsmoRetard, Exerge, Fortovase and Carvetrend.

Piramal Holdings cash offer

Depth Finance and Investments (the acquirer) has, pursuant to the first offer, sent a communication to the shareholders of Piramal Holdings for a second cash offer to acquire thebalance 6,94,887 fully-paid equity shares of Rs 10 each (all outstanding), representing 6.94 per cent of the equity capital of Piramal Holdings, at Rs 55 per share. The first offer of Rs 55 per share was made through a offer letter dated October 20, 1998.

The acquirers are acting on behalf of Dino Fininvest, Unite Finance and Investments, Akshar Fincom and Nandan Piramal Investments. The offer opens on January 19 and closes on February 17 and is being managed by DSP Merrill Lynch. The acquirer has sought the delisting of Piramal Holdings shares from stock exchanges on completion of the second cash offer.

INSIGHT

New products to boost net

There is very little to be excited about Nicholas Piramal's third-quarter results. The company's turnover increased 10.34 per cent in the third quarter compared with the pharma division (post spin-off) in the previous year. However, growth in the first half of the current fiscal was 16.73 per cent. Further, bottomline growth in the first half was20.15 per cent compared with just 10.76 per cent in the third quarter. Operating margins in the third half of the current fiscal, however, improved from 13.15 per cent to 14.18 per cent for the same period in the previous fiscal. In the longer run, however, the company's new product portfolio should boost profits.