Mumbai: Novartis India Ltd, a leading Indian pharmaceutical company, has completed formalities for transfer of its second plot of land and premises, situated at Goregaon, a Mumbai borough, to Kingston Properties Pvt Ltd. The company has received Rs 198.80 million after discount, given on pre-payment for the sale of the property. Novartis India had, in February 2002, completed formalities for transfer of its first plot of land and premises in Goregaon to Kingston Properties. This transfer was subsequent to approval from the appropriate tax authorities. The company had received balance consideration of Rs 75 million on completion of this transfer.

The sale of Novartis properties is spread over a period of fours for a total sum of Rs 725 million. During this period, Novartis India will continue to occupy the premises, which were under its ownership.

The company net profit surged 137 per cent to Rs 16.6 crore in the first quarter of 2002-03 from Rs 7 crore in the corresponding period of the previous year as the company slashed costs and gained from low-interest payments. Net sales grew 15 per cent to Rs 127.5 crore while the total expenditure rose just 3 per cent to Rs 103.2 crore. The company said higher profits resulted from higher volumes and a favourable product mix.

Operating margins rose sharply to 19 per cent of sales from 9.4 per cent. Interest payments fell 91 per cent to Rs 22 lakh from Rs 2.47 crore. The company said the net sales growth was spurred by the core pharmaceuticals business, which grew 16 per cent to Rs 76 crore. The company shareholders at the annual general meeting approved a resolution allowing the company to buy back its shares. Novartis managing director Robert Thompson had earlier said at an analysts meet that the resolution will provide flexibility to the company in case it wants to do a buyback.