The Hindu Business Line : Nicholas Piramal net falls 5.7 pc

The company has clocked a net profit after tax and exceptional item of Rs 51 crore for the quarter ended June 30, 2006, compared to Rs 54.13 crore for the quarter ended June 30, 2005. Total income (net of excise) has increased from Rs 382.98 crore in the first quarter of the financial year 2005-06 to Rs 401.89 crore in the first quarter of the financial year 2006-07.

VAT factor

Last year, the corresponding quarter saw extra sales, as the industry was recovering from the impact of value-added tax, NPIL's Chairman, Mr Ajay Piramal told Business Line, explaining the marginal dip in profits.

"During the later part of the quarter ended March 31, 2005, stockists carried lower inventory in anticipation of introduction of VAT, with effect from April 01, 2005, and there was a consequent spill over of sales to the quarter ended June 30, 2005. Excluding the estimated spill over sales, on a like to like basis, sales and EPS during the current quarter grew by 17.4 per cent and 22.4 per cent, respectively," the company told the Bombay Stock Exchange.

The group's consolidated results give the real picture, Mr Piramal said, as 35 per cent of the company's turnover comes from its subsidiaries.

The group posted a 7 per cent growth in profit after prior period items at Rs 53.86 crore for the quarter ended June 30, 2006, compared to Rs 50.20 crore for the quarter ended June 30, 2005. Total income (net of excise) is Rs 522.58 crore for Q1 FY 06-07, as compared to Rs 400.09 crore in Q1 FY 05-06.

The consolidated results for the current quarter ended June 30, 2006, include the results of NPIL Pharmaceuticals (UK) Ltd, UK and Torcan Chemical Ltd, Canada, which were acquired in December 2005. The figures, therefore, are not strictly comparable, NPIL said in its announcement to the BSE.

NPIL shares at Rs 206.50 were up 5.52 per cent on the BSE.