First Half Turnover Up 25% To Rs 212 Crore

Wockhardt ended the first half of 1997-98 with a turnover growth of 25 per cent, against the corresponding period in the previous year.

For the half year-ended December 1997 the company's sales moved up to Rs 212.7 crore from Rs 170.7 crore.

Industry observers feel the impressive performance of the companys leading brands viz, Pelox and Wockadine, both anti-infectives and Proxyvone, analgesic, as the reason behind strong top line growth.

Operating profit margin, however, came down marginally to 18.5 per cent from 19 per cent. Intensified competition in the parenterals and nutritions, which are basically high volume low margin segment, proved to be drag in the profitability front. The net interest outflow stood at nil, as in the previous year. Debt equity ratio is also quite low at 0.16:1 times.

With the company planning acquisition of firms and brands worth Rs 200 crore in the coming years, it could utilise its better leveraging capacity.

During this half, Wockhardt commissioned two new manufacturing facilities at Chandigarh. Commencement of the commercial production of the Rs 42-crore paediatric and medical nutrition product facility hiked its depreciation by 9.2 per cent to Rs 5.9 crore. Other income came down sizable in the first half by 25 per cent to Rs 4.9 crore. In the corresponding period previous year it stood at Rs 6.6 crore.

This had impact on the net profit growth which grew at a lesser pace of 15 per cent (compared to sales growth of 25 per cent). Net profit moved up from Rs 31.5 crore to Rs 36.3 crore.

The company which came under MAT in the financial year 1997-98 has made a provision of Rs 2.2 crore towards tax liability This is 5.7 per cent in terms of its profit before tax at Rs 38.5 crore.