The company has also announced its maiden interim dividend of 35 per cent for 1998-99. Consolidated sales of Wockhardt and Merind for the six-month period increased to Rs 364.6 crore (Rs 296.3 crore) while net profits rose to Rs 44.3 crore (Rs 39.9 crore). Revenues and earnings are expected to grow faster after the operational consolidation exercise of the two companies is completed.

Operating profits of Wockhardt rose 37 per cent to Rs 54 crore while operating margins improved to 20.9 per cent from 19.1 per cent in the previous year. This has been achieved by keeping a tight control on costs, application of reserach and development to lower the cost of production of existing products, introduction ofnew products that offer higher margins and an increasing per employee contribution, according to a company press release.

Net profit margin has fallen to 15.1 per cent from 17.6 per cent because of an additional interest burden. An interest cost of around Rs 6.7 crore was incurred to fund the acquisition of Tata group company, Merind.

Wockhardt chairman and managing director HF Khorakiwala said, "The improved performance of the group was largely on account of the synergies achieved between the company and Merind during the period. The group has improved its ORG ranking from nine as on March 1998 to five as on November 98. Leadership has been maintained in core products like Spasmoproxyvon, Proxyvon, Aziwok, while the fluid therapy business has attained a market share of 30 per cent. Two new entrants, Sparx and Powercef have also raeched leadership positions in the period under review".

Merind turnover improved by 15 per cent to Rs 106.1 crore, while operating margins improved from 6.8 per cent to 8.9per cent. The Merind scrip has already been delisted from the bourses.