The bottom line has risen to Rs 70.78 crore in 1997-98 from Rs 62.12 crore in 1996-97. The operating profit recorded a 21 per cent increase to Rs 63.8 crore from Rs 52.7 crore. The earnings per share of the company now stands at Rs 19.13 (Rs 17.52). The Wockhardt board has recommended a dividend of 60 per cent for its shareholders.

Wockhardt's future growth is projected to come from new products such as cardiac specialities, medical nutrition products, Hepatitis B vaccine and Vitamin B12.

Merind, now part of the Wockhardt group, has registered a healthy 70.5 per cent rise in turnover to Rs 122 crore from Rs 208 crore in the 15-month period ended June 30, 1998. The bottomline has risen to Rs 8.58 crore from Rs 4.17 crore. The earnings per share has increased to Rs 23.57 from Rs 11.43.

The company has grown by over 350 per cent since its public issue in December, 1992. During the year, Wockhardt's product SPARX, a new generation fluoroquinolone anti-bacterial, achieved a premier position in its segment. Its other new product, POWERCEF, has climbed to the second position in less than a year. Moreover, it is now the world's second largest producer of the anti-tussive drug Dextromethorpan, with a 15 per cent market share globally. Wockhardt already is a world leader in dextropropoxyphene and captropril.

INSIGHT

Growth hinges on new products

Though Wockhardt has recorded a 36 per cent growth in turnover, its profit before tax has increased by only 8 per cent. A lower provision for tax with an effective tax rate of 3.8 per cent as against 8.8 per cent in the previous year has helped the bottomline grow by 14 per cent.

Future growth depends on products in high realisation segments such as cardiac, nutritional and more importantly, the Hepatitis B vaccine. This coupled with the volume growth from Merind's product, Vitamin B12, should improve the company's profitability.