• SEPTEMBER 26, 2001

Pfizer: 3QFY02 net up 14%

Pfizer, has declared 14% rise in net profit for Q3FY02 (quarter ending in Aug'01). The rise in net profits was mainly on the back of 40 basis points increase in operating margins and a spurt in other income. The third quarter performance for the company is usually the best as sales of cold and cough preparations pick up during this quarter. However, a flat sales growth was quite disappointing.

(Rs m)3QFY013QFY02% Change
Sales 803 822 2.4%
Other Income 132 15416.8%
Expenditure 704 719 2.1%
Operating Profit (EBDIT) 98 103 5.0%
Operating Profit Margin (%)12.2%12.6% 
Interest 0.91-22.2%
Profit before Tax 217 239 10.2%
Profit after Tax/(Loss) 129 147 14.0%
Net profit margin (%)16.1%17.9% 
No. of Shares (eoy) (m)23.423.4 
Diluted Earnings per share*22.125.1 
P/E (at current price)18.115.9 
(*- annualised)      

The rise in operating margins seems to be on the back of new products, especially Magnex and Hepashield B. Pfizer's merger with Parke Davis is expected to be through by 2002, though the company has already integrated it's operations with that of Parke Davis. The integration is expected to strengthen Pfizer's position in the OTC market as Parke Davis product stable boosts of some established brands such as Benadryl, Gelusil and Listerine.

At the current market price of 400, the stock is trading at 21x FY02 expected earnings.

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