The significant feature which marked the year was the sale of PGHH's Mediker brand to Marico Industries for a consideration of Rs 10 crore. According to analyts, going by this the actual increase in net profit is Rs 3 crore over the previous year.

The board has recommended a final dividend of Rs 5 per equity share for the year ended June 1999, which in addition to the special one-time interim dividend of Rs 35 per share takes the total to Rs 40 per share. Thus, the earnings per share works out to Rs 26.28 per share.

During the year under review, operating profit grew by 14.5 per cent to Rs 85.7 crore from Rs 74.84 crore last year. Operating profit margins improved to 18.3 per cent from 16.98 percent. Net profit margins too improved to 12.14 per cent from 9.8 per cent last year. Export sales registered a growth of 12 per cent over last year to Rs 24.1 crore.

Interest costs have reduced considerably to Rs 2.92 crore from Rs 6.47 crore. Depreciation was higher at Rs 23.05 crore (Rs 22.74 crore), while provision for taxation was lower at Rs 9.60 crore (Rs 10.24 crore).

The PGHH scrip on the BSE closed at a low of Rs 1,221 on Monday as against its previous close of Rs 1,219.

Commenting on the financial performance, PGHH chairman & managing director Bharat V Patel said: ``During the year, consumer demand decelerated due to economic slowdown. This coupled with high level of competitive activity, both in feminine hygiene and health care categories, put a constant pressure on volume growth of these categories.''

Patel added that despite the pressure, the company has further upgraded the quality of its products. The company relaunched two upgraded versions of Whisper and one of Vicks Action 500packaging in 1998-99.

Manufacturing arrangement with P&G Home Products goes

Procter & Gamble Hygiene and Health Care India (PGHH) is terminating the manufacturing arrangement that it shares with Procter & Gamble Home Products (PGHP), the wholly-owned subsidiary of the parent company, this year.

As per this, PGHH will thus stop manufacturing shampoo for PGHP.

According to PGHH chairman & managing director Bharat V Patel, this is due to change in formulation that requires regional manufacturing capabilities. The company spokesperson said that the company would in the near future start importing the shampoo brands instead of manufacturing. However, it is not clear as to which of the two companies will carry out the imports.

The spokesperson added that imports will not affect the pricing of the shampoo brands in India.

The company said that its financials will not be adversely affected by this termination "as PGHH would receive a suitable compensation." The employees at PGHH's Hyderabad shampoofacility will be re-deployed in other areas of the company, a press release from PGHH said.

The global shampoo brands of P&G in India are Pantene and Head & Shoulders, both of which are premium brands in terms of pricing.