ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Larger Sales, Lower Margin

Larger Sales, Lower Margin IVP's net sales during the year ended March 31; 1990 showed a 44 per cent increase on annualised basis to reach Rs 61.88 crore from Rs 53.63 crore during the 15-month period ended March 31, 1989. Due to the deterioration of the ex- penses to sales ratio from 0.91:1 to 0,92:1 mainly on account of raw material cost which spurted by 53 per cent (annualised) during the year, operating profits increased at a lower rate of 21 per cent (annualised). A 29 per cent (annualised) growth in interest costs allowed the net profit of the company to rise at a still lower rate of 12 per cent (annualised) in 1989-90. There was also an annualised increase by 63 per cent in depreciation due to increased investments in fixed assets for expansion and modernisation.

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