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.
Aventis Pharma: Encouraging performance - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Mar 20, 2002

    Aventis Pharma: Encouraging performance

    The restructuring exercise at Aventis is finally through and the results of the same are partially evident in FY02 results. Aventis has reported steady rise in operating margins during all the quarters of last year. The key brands of the company have logged attractive growth numbers inspite of stiff competition and the new product pipeline ahead seems to be exciting.

    (Rs m) 9m FY01 FY02 Change
    Sales 3,797 5,447 43.5%
    Other Income 57 127 122.8%
    Expenditure 3,234 4,461 37.9%
    Operating Profit (EBDIT) 563 986 75.1%
    Operating Profit Margin (%) 14.8% 18.1%
    Interest 28 15 -46.4%
    Depreciation 90 151 67.8%
    Profit before Tax 502 947 88.6%
    Extraordinary Expenses (149) (8) -94.6%
    Tax 114 273 139.5%
    Profit after Tax/(Loss) 239 666 178.7%
    Net profit margin (%) 6.3% 12.2%  
    No. of Shares (eoy) (m) 23 23  
    Diluted Earnings per share* 10.4 29.0  
    P/E (at current price) 12.8  

    The performance of the company is line with our expectations. The results are however, are not comparable on a like to like basis as the last financial year comprised of only 9 months. Further, the company has also merged its subsidiary Rhone Poulenc Rorer with effect from April'01. Exceptional charges of Rs 159 m came in due to amortisation of VRS expenses, whereas there has been an exceptional income of Rs 151 m on account of surrender of tenancy and development rights for a portion of the company's land.

    On a like to like basis, sales has registered a growth of 7%. Growth has been fuelled by growth of its key brands, Cardace (70%), Allegra (45%), Amaryl (56%) and Tavanic (55%). Exports registered an encouraging growth of more than 30%, ahead of our expectations. The company has also launched Arava, which is a US$ 250 m + brand for the parent company globally.

    The product introduction from the parent company has remained strong in case of Aventis Pharma. With the merger of its subsidiary Rhone Poulenc Rorer, Aventis Pharma product portfolio now boasts of 11 of the top 14 products of the parent company. The parent company is also expected to launch its new anti-diabetes product 'Lantus' in mid 2003. 'Lantus' has already met with good success in US and Europe.

    At the current market price of Rs 370, the stock trades at a P/e of 11x its FY03 expected earnings which is at a discount when compared to its peers. Inspite of a strong performance and encouraging product pipeline, the stock price has remained lackluster. This is due to the lack of clarity over the recent DPCO order. While it would be futile to bet over the exact implications of the DPCO order, the negatives seem to be discounted in the current price. Any positive development on this front, could be a strong point for a re-rating of the stock.



    Equitymaster requests your view! Post a comment on "Aventis Pharma: Encouraging 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

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    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 23, 2017 (Close)


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


    Compare Company With Charts