Nicholas: Robust numbers - 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?  

Nicholas: Robust numbers

Jul 19, 2002

Nicholas Piramal has recorded an encouraging 20% topline growth for 1QFY03. Net profit, excluding extraordinary expenses grew by 69% YoY. The extraordinary charge of Rs 25 m was on account of amortisation of VRS and restructuring expenses. Operating margins registered a 100 basis points rise. The first quarter numbers of the current year include figures of ICI Pharma Ltd, acquired by the company recently. Hence, the results are not exactly comparable with corresponding previous quarter.

(Rs m) 1QFY02 1QFY03 % Change
Sales 1,860 2,232 20.0%
Other Income 69 189 172.8%
Expenditure 1,530 1,814 18.6%
Operating Profit (EBDIT) 330 418 26.8%
Operating Profit Margin (%) 17.7% 18.7%  
Interest 113 116 2.5%
Depreciation 43 65 51.8%
Profit before Tax 243 426 75.1%
Other Adjustments (27) (25)  
Tax 34 90 161.6%
Profit after Tax/(Loss) 182 312 71.2%
Net profit margin (%) 9.8% 14.0%  
No. of Shares (eoy) (m) 38.0 38.0  
Diluted Earnings per share 19.1 32.8  
P/E (at current price)   8  

The company's formulations business has recorded a 20% growth over previous corresponding quarter, outperforming industry growth rates. Nicholas Piramal, together with its joint ventures, continued to maintain its second rank in domestic formulations as per ORG. The company also enjoys first rank in the cardio-vascular segment (CVS), post-acquisition of the pharma business of ICI India Ltd. in March 2002. The rise in operating margins reflect restructuring plans, including reshuffling of product portfolio implemented by the company in the last financial year.

At the current market price of Rs 266, the stock is trading at 8x it annualised earnings for 1QFY03. The company’s investments and acquisition synergies are expected to start percolating into the financial numbers in the current year. Immediate cash flows from sale of property and effective utilisation of internal accruals is expected to ensure considerable savings in interest costs for Nicholas Piramal in the current year.


Equitymaster requests your view! Post a comment on "Nicholas: Robust numbers". Click here!

  

More Views on News

Sorry! There are no related views on news for this company/sector.

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.

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.

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.

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

MARKET STATS