IFB INDUSTRIES-Higher Capacity Utilisation

in interest cost on higher borrowing for working capital.
The total turnover of the company increased by 29.4 per cent. However, profit before tax showed a decline of 62.9 per cent while profit after tax deteriorated by 43 per cent. Sales of pharmaceuticals grew by 27.8 per cent, thanks to the integrated marketing approach. According to the company, profits could not match sales due to the restrictive pricing policy. Though the cost of raw materials for the production of chloramphenicol went up by more than 15 per cent, price increase granted for the formulation based on chloramphenicol, ie paraxin, which is the target selling product of the company, was only 5 per cent. The sales of diagnostic division increased by 48.1 per cent in spite of severe competition. The company introduced several new diagnostic tests including immunology tests.