NPIL to pay 100% dividend

Mumbai, April 20: The board of Nicholas Piramal India Ltd (NPIL) on Monday proposed a 100 per cent dividend for the year ended March 31, 199...

Mumbai, April 20: The board of Nicholas Piramal India Ltd (NPIL) on Monday proposed a 100 per cent dividend for the year ended March 31, 1998. The proposed dividend comprises of a regular dividend of Rs 4.50 per share and, an additional one-time special dividend of Rs 5.50 per share following the sale of Gujarat Glass, which will result in the inflow of additional funds.

The proposed regular dividend of Rs 4.50 per share is 20 per cent higher than the previous year’s figure of Rs 3.75 per share.

The net profit for the year ended March 31, 1998 at Rs 56.54 crore was 23.1 per cent higher than that of the previous year’s Rs 45.92 crore. Sales for the year rose 9.4 per cent to Rs 534.6 crore as against previous fiscal’s Rs 488.51 crore.

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The company’s scrip jumped to Rs 406 on the BSE on Monday as compared to its previous closing of Rs 380.

While the pharmaceuticals and glass business grew by 16 per cent and eight per cent respectively, the bulk drugs division recorded a 29 per cent decline.

Net profitmargins for the year were higher at 10.58 per cent compared with the previous years figure of 9.4 per cent. Earnings Per Share (EPS) rose to Rs 20.4 from Rs 16.6 in the previous year.

The Company said that it has spun off its glass and bulk drugs divisions, to focus on the pharma business which is increasingly viewed as a “sunrise sector” due to better growth prospects and higher return on capital employed.

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While Nicholas Piramal will hold a 60 per cent stake in the glass company, Gujarat Glass Ltd, it is in talks with leading European players for a strategic alliance in the bulk drugs business.

Depreciation for the period 1997-1998 was Rs 18.46 crore while provision for taxation stood at Rs 5 crore (previous year Rs 4.05 crore). Extraordinary and prior period items accounted for Rs 18.88 crore. Nicholas Piramal plans to launch over 20 products in the next two years.