X

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.
Knoll Pharma: 3QFY02 PBT rise 26% - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 23, 2001

    Knoll Pharma: 3QFY02 PBT rise 26%

    Knoll Pharmaceuticals, subsidiary of Abbot AG, has declared its 3QFY02 report card. While sales have grown by around 3%, operating margins have jumped 240 basis points. Higher operating margins, coupled with interest savings helped to achieve a 26% growth in PBT. However, net profit dropped by 48% due to inclusion of an extraordinary income to the tune of Rs 132 m in the last year from sale of property at Sion, Mumbai. Similarly the first half also had an extra-ordinary income of Rs 161 m on account of profit on sale of mutual fund units.

    (Rs m) 3QFY01 3QFY02 % Change 9mFY01 9mFY02 % Change
    Sales 901 932 3.4% 2,529 2,676 5.8%
    Other Income 25 27 8.1% 92 148 61.1%
    Expenditure 768 771 0.4% 2,139 2,240 4.7%
    Operating Profit (EBDIT) 133 161 20.6% 390 437 11.9%
    Operating Profit Margin (%) 14.8% 17.2% 15.4% 16.3%
    Interest 6 0 -98.2% 14 2 -88.3%
    Depreciation 13 12 -6.3% 39 35 -10.9%
    Profit before Tax 139 175 25.7% 429 548 27.6%
    Extraordinary Income 132   - 293 - -100.0%
    Tax 38 54 41.9% 96 139 44.7%
    Profit after Tax/(Loss) 233 122 -47.8% 626 410 -34.6%
    Net profit margin (%) 11.3% 13.1%   13.2% 15.3%  
    No. of Shares (eoy) (m) 16 16   16 16  
    Diluted Earnings per share* 57.6 30.0   52.2 34.1  
    P/E (at current price) 8.6   7.5  
    (*- annualised)            

    Overall the performance for first nine months is remarkable considering that there was a drop in operating profit in the first quarter on the back of cut in Ibuprofen prices by NPPA in January this year. Ibuprofen is a bulk drug which is used in pain management segment. As Knoll Pharma is a market leader in the Ibuprofen market, the price cut had a severe impact on the company's financials in the first quarter. The jump in operating margins in the current quarter seems to be on the back of upward revision of four formulations of Insulin injection in March. Insulin Vial prices have increased by 22% - 25% since then. Insulin is the biggest revenue churner for Knoll where the company has a market share of close to 60%.

    Abbot Labs had recently made an open offer at Rs 328 per share to the shareholders of Knoll Pharma covering 20% of the company's equity. This follows Abbot's acquisition of Lupharma UK Holding One Ltd. which in turn holds a 51% stake in Knoll Pharmaceuticals.The free float of the company post acquisition is very limited. At the current market price of Rs 257, the stock is trading at a P/e of 7x its FY02 expected earnings.

     

     

    Equitymaster requests your view! Post a comment on "Knoll Pharma: 3QFY02 PBT rise 26%". 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

    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.

    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.

    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.

    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!

    More
    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

    ABBOTT INDIA SHARE PRICE


    Aug 22, 2017 (Close)

    TRACK ABBOTT INDIA

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

    ABBOTT INDIA - AUROBINDO PHARMA COMPARISON

    Compare Company With Charts

    COMPARE ABBOTT INDIA WITH

    MARKET STATS