Wockhardt (WOCKPHARMA) Q4 2002 earnings summary

Executive summary

• FY 2002 standalone sales rose 14% to Rs. 7,416 million and profit after tax rose 7% to Rs. 1,088 million; growth came alongside stronger exports and domestic branded products.

• R&D, biotechnology and generic formulations were central growth priorities; international business reached 38% of sales.

Financial highlights

• Standalone sales and services were Rs. 7,416.40 million vs. Rs. 6,494.21 million; profit before tax was Rs. 1,194.17 million vs. Rs. 1,085.71 million.

• Standalone net profit was Rs. 1,088.42 million vs. Rs. 1,021.86 million; deferred tax charge of Rs. 25.63 million reduced current-year net profit by the same amount.

• Consolidated sales and services were Rs. 8,090.99 million vs. Rs. 7,338.09 million; consolidated net profit was Rs. 1,050.87 million vs. Rs. 1,063.15 million.

• Consolidated operating cash flow was Rs. 831.81 million vs. Rs. 1,314.75 million; cash and cash equivalents ended at Rs. 78.15 million vs. Rs. 512.88 million.

Outlook and guidance

• Recombinant human insulin was planned for launch in 2003; global manufacturing capacity was being built, with biotechnology launches in Europe and North America expected from 2005.

• Interferon alpha-2b trials were progressing, with approvals expected in 2003; the quadrivalent vaccine was described as likely to reach market soon.

• The export market was expected to sustain growth of 35–40%; developed-market generic formulations and biopharmaceuticals were identified as key future growth drivers.