Wockhardt Ltd has declared encourgaging results for 3QFY02. While sales grew by 15% to 1,724 m, net profit forged ahead by 35% to Rs 300 m. Operating margins improved by 300 basis points. However, interest cost shot up considerably to Rs 38 m. On a consolidated basis, sales for the quarter grew by 14% to Rs. 193 crores while Profits grew by 37%.
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Domestic pharma sales grew by 14% fuelled by better focus on chronic and preventive therapeutic segments, which now account for more than 40% of the company's branded pharma sales. Two biotech products viz, 'Biovac' (Hepatitis B vaccine) and 'Epox' (Erythopoetin) grew at triple digit growth rates. Exports business continued to record a healthy jump in performance which grew by 29%. The jump in operating margins is on account of the company's focus on value added formulation exports and launch of biotech products in the domestic markets.
At the current market price of Rs 417, the stock is trading at 14.3x times FY02 expected earnings.
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