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)4QFY014QFY02ChangeFY01FY02Change
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)4QFY014QFY02*ChangeFY01FY02*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 2020-21 Annual Report Analysis (Annual Result Update)

Sep 6, 2021 | Updated on Sep 6, 2021

Here's an analysis of the annual report of WOCKHARDT for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of WOCKHARDT. Also includes updates on the valuation of WOCKHARDT.

3 Indian Pharma Companies that are Investing Big Time for the Future (Views On News)

Nov 9, 2021

In 2021, R&D of pharma companies roared to life in a never-before-seen way.

5 Indian Pharma Companies Riding the Vaccination Wave (Views On News)

Sep 3, 2021

These companies are likely to benefit the most from Covid-19 vaccines.

This Stock Just Made a Historical Debut on the Exchanges (Views On News)

Nov 15, 2021

Shares of the company listed at premium of 253% from its IPO price, the highest ever.

Demerger of Financial & Pharma Businesses puts Piramal Enterprises in Limelight (Views On News)

Oct 8, 2021

The company's shareholders will be issued 4 shares in the demerged entity for every 1 held in Piramal Enterprises.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

How to Hit Rs 100 Crore Wealth in Your Lifetime (Equitymaster Wealth)

Nov 15, 2021

This is how you can achieve the ambitious goal of a net worth of Rs 100 crore.

Don't Sell these Stocks if the Market Falls (Profit Hunter)

Nov 17, 2021

These are the 3 types of stocks that you should not sell in a market crash.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

WOCKHARDT SHARE PRICE


Nov 26, 2021 (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 - ERIS LIFESCIENCES COMPARISON

COMPARE WOCKHARDT WITH

MARKET STATS