Net sales increased by 2.5 per cent to touch Rs 152.09 crore as against Rs 148.40 crore in the previous year. Other income stood at Rs 9.44 crore and includes profit on sale of assets.

For the third quarter ended December 31, 1999, the net profits jumped by 276.7 per cent to touch Rs 6.78 crore as against Rs 1.80 crore in the corresponding period of the previous year. Payments towards voluntary retirement and compensation payments during the quarter stood at Rs 1.55 crore and represents pro-rata charge as the payments made to the employees of the Mumbai plant during 1997-98 towards the voluntary retirement scheme, payments made towards compensation for termination of contractual and other arrangements pertaining to the Mumbai plant during 1998-99.

Similar expenses incurred under theVRS for employees of the Hyderabad plant during the current quarter ended December 31, 1999, are charged to the P&L account within a period of 60 months from accrual.

Parke-Davis chairman and managing director Pramod H Lele attributed these positive developments to the combination of stringent cost control measures, such as expenditure at Rs 43.04 crore which was below that of the corresponding period at Rs 43.30 crore despite growth in sales and the interest burden which also witnessed a sharp decline of 45.8 per cent at Rs 1.41 crore (Rs 2.60 crore).

The board also took on record that the company's marketing strategy of optimising its product mix resulted in an increase in net sales by 7.4 per cent to Rs 51.08 crore (Rs 47.57 crore). Other income was up by 21.5 per cent to Rs 4.69 crore.