During the quarter under review, the company has improved its margins on account of reduction in the raw-materials cost and staff cost as percentage of turnover. E-Merck, during the quarter, improved its operating, gross and net margin to 21.3 per cent, 20.9 per cent and 13.7 per cent from 18.2 per cent, 17.4 per cent and 9.7 per cent respectively in the corresponding quarter last year.

Raw material consumption increased to Rs 42.95 crore from Rs 38.39 crore while the other expenditure increased to Rs 14.18 crore from 13.11 crore over the corresponding quarter last year.

The bottomline would have better off had it not been for the tax provision which increased to Rs 4.48 crore from Rs 2.70 crore for the quarter, analysts said. The increase in taxes is on account of the company exhausting its backward area tax benefits for the soft gelatine capsules plant at Goa.

E-Merck, with presence in vitamin formulation and increasing it in important cardiovascular, anti-infectives and anti-malarial segments, analysts say seems to be fortunate in having a remunerative prices for its products in the era of National Pharmaceutical Pricing Authority (NPPA) slashing prices on a number of formulations which is evident from the increased turnover.

For the 9-month period, the company has posted an 83 per cent increase in net profit to Rs 28.26 crore and 12.2 per cent increase in turnover to Rs 233.45 crore.