Wockhardt (WOCKPHARMA) Q4 2001 earnings summary

Executive summary

• FY2001 sales grew 16% to Rs. 7.4bn; net profit rose 43% to Rs. 1.02bn, with operating margin expanding to 20%.

• R&D-led biotechnology and value-added exports supported growth; international business represented 35% of turnover.

Financial highlights

• Consolidated sales and services were Rs. 7,338.09m; consolidated net profit was Rs. 1,063.15m after a Rs. 19.13m prior-year tax short provision.

• Standalone sales and services rose to Rs. 6,494.21m from Rs. 5,584.82m; net profit after tax was Rs. 1,021.86m versus Rs. 715.88m.

• Standalone operating cash flow increased to Rs. 1,218.99m from Rs. 749.12m; year-end cash and bank balances reached Rs. 481.72m.

Outlook and guidance

• International business was targeted to rise from 35% to ~50% of turnover over the next few years; insulin launch in India was planned for H1 2003.

• Wallis had regulatory applications for 8 products and 14 more in its pipeline; some were expected to contribute during the current year.

• Five international strategic alliances were added in 2001; Super-Generics and novel drug-delivery products were identified as growth drivers in regulated markets.