Wockhardt: Impressive performance - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Wockhardt: Impressive performance

Feb 12, 2002

Wockhardt Ltd has declared encouraging results for FY02. While sales have grown by more than 16%, net profit forged ahead by 43% to more than a Rs 1 bn. This was mainly on the back of an impressive 300 basis points rise in operating margins. However, interest cost shot up considerably to Rs 38 m. On a consolidated basis, sales for the quarter grew by 14% to Rs 2 bn while profits grew by 37%.

(Rs m) 4QFY01 4QFY02 Change FY01 FY02 Change
Net sales 1,492 1,779 19.2% 5,585 6,494 16.3%
Other Income - 5 - 53 36 -32.1%
Expenditure 1,236 1,384 12.0% 4,636 5,178 11.7%
Operating Profit (EBDIT) 256 395 54.3% 949 1,316 38.7%
Operating Profit Margin (%) 17.2% 22.2%   17.0% 20.3%  
Interest 4 28 - 135 144 6.7%
Depreciation 24 35 45.8% 97 122 25.8%
Profit before Tax 228 337 47.8% 770 1,086 41.0%
Other Adjustments - -   - -  
Tax 19 12 -36.8% 54 64 18.5%
Profit after Tax/(Loss) 209 325 55.5% 716 1,022 42.7%
Net profit margin (%) 14.0% 18.3%   12.8% 15.7%  
No. of Shares (eoy) (m) 36.3 36.3   36.3 36.3  
Diluted Earnings per share 23.0 35.8   19.7 28.2  
P/E (at current price) 13.6   17.3  

The growth was mainly driven by aggressive new product launches in the domestic market and increasing penetration on the exports front. The company's exports grew by 41% during the year to Rs 2 bn. This was driven by over 85% growth in value-added formulations, accounting for almost a third of Wockhardt’s exports. Wockhardt's international business (including Wallis) now constitutes 35% of the total turnover and is growing rapidly. During the year, Wockhardt significantly expanded the manufacturing capacities of its bulk-actives 'Dextropropoxyphene' and Vitamin B12. These would enable Wockhardt to maintain the current growth rates by capturing a larger slice in the global market.

Two biotech products of the company viz. 'Biovac' (Hepatitis B vaccine) and 'Epox' (Erythopoetin) grew by more than 100% during the year. Biotech business now accounts for almost 10% of the company's turnover.

(Rs m) 4QFY01 4QFY02* Change FY01 FY02* Change
Formulations- Branded 921 1,008 9.4% 3,556 3,973 11.7%
Formulations- Generics 93 75 -19.4% 471 375 -20.4%
Exports 382 589 54.2% 1,212 1,712 41.3%
Bulk Drugs- Domestic 93 107 15.1% 346 433 25.1%
TOTAL 1,489 1,779 19.5% 5,585 6,493 16.3%
*period ending December'01

The rise in operating margins and performance of the key products of the company are impressive. At the current market price of Rs 486, the stock trades at a P/E multiple of 17x FY02 earnings. The stock seems to be fairly valued when compared to its peer companies like Dr. Reddy's and Ranbaxy.


Equitymaster requests your view! Post a comment on "Wockhardt: Impressive performance". Click here!

  

More Views on News

WOCKHARDT Announces Quarterly Results (3QFY20); Net Profit Up 125.0% (Quarterly Result Update)

Jan 28, 2020 | Updated on Jan 28, 2020

For the quarter ended December 2019, WOCKHARDT has posted a net profit of Rs 192 m (up 125.0% YoY). Sales on the other hand came in at Rs 9 bn (down 16.9% YoY). Read on for a complete analysis of WOCKHARDT's quarterly results.

WOCKHARDT Announces Quarterly Results (1QFY20); Net Profit Up 57.2% (Quarterly Result Update)

Aug 28, 2019 | Updated on Aug 28, 2019

For the quarter ended June 2019, WOCKHARDT has posted a net profit of Rs 369 m (up 57.2% YoY). Sales on the other hand came in at Rs 9 bn (down 14.3% YoY). Read on for a complete analysis of WOCKHARDT's quarterly results.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why am I Recommending Caution? (Fast Profits Daily)

Sep 9, 2020

This is why I have changed my short-term view on the market.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

WOCKHARDT SHARE PRICE


Sep 21, 2020 (Close)

TRACK WOCKHARDT

  • Track your investment in WOCKHARDT with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

WOCKHARDT 8-QTR ANALYSIS

COMPARE WOCKHARDT WITH

MARKET STATS