Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Wockhardt: Impressive performance - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Feb 12, 2002

    Wockhardt: Impressive performance

    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

    Sun Pharma: Bottomline Slips into the Red Amidst Challenging Environment (Quarterly Results Update - Detailed)

    Aug 14, 2017

    A challenging environment and one-time expense pushes Sun Pharma into a loss in the first quarter.

    Lupin: Bigger Challenges or Bigger Margin of Safety? (Quarterly Results Update - Detailed)

    Aug 14, 2017

    GST impact coupled with price erosion in US leads to lower profits for the quarter.

    Dr Reddy's: US Pressure Continues to Haunt (Quarterly Results Update - Detailed)

    Aug 8, 2017

    Profits plunge due to higher raw material costs.

    Biocon: Lower Licensing Income Leads to Muted Growth for the Quarter (Quarterly Results Update - Detailed)

    Jun 23, 2017

    Net Profit lower due to exceptional items in the previous year.

    Sun Pharma: Price Erosion in US Impacts Growth (Quarterly Results Update - Detailed)

    May 30, 2017

    US markets decline while other geographies grow in the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)


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



    Detailed Financial Information With Charts