Hoechst's results declared yesterday are more or less in line with our expectations. While the turnover was slightly lower than what we had projected, the net profit almost matched our expectations. The company however managed to improve its operating margins but wrote off Rs 149 m due to extraordinary expenses which were amortisation of the VRS expenses and marketing and technical rights.
9 mths FY01
12 m FY01 (E)
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
Earnings per share*
The stock quotes at a price of Rs 470 which implies an earnings multiple of 29 times FY01 earnings. For the coming year we expect Hoechst to report a net profit in the range of Rs 432 m, which implies an earnings per share of Rs 18.8 per share and an earning multiple of 25 times FY02 earnings.
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