Wockhardt (WOCKPHARMA) Q4 96/97 earnings summary

Executive summary

• FY ended June 30, 1997: income reached Rs. 3,279 million, operating profit Rs. 527 million and profit after tax Rs. 621 million; sales rose 33% to Rs. 3,125 million.

• Five-year sales and PAT CAGRs were 28% and 38%, respectively; 40% of FY97 sales came from products and businesses launched in the prior five years.

Financial highlights

• Income increased 29% to Rs. 3,279 million; reported sales and services were Rs. 2,951 million, with other income of Rs. 154 million.

• Operating profit rose 31% to Rs. 527 million; profit before tax increased 13% to Rs. 681 million, while profit after tax grew 4% to Rs. 621 million.

• Cost of materials consumed rose to Rs. 1,416 million from Rs. 1,061 million; employee cost was Rs. 226 million and other expenses Rs. 737 million.

• Recommended dividend was 50%; payout including dividend tax was Rs. 193 million. Rs. 400 million was allocated to General Reserve.

Outlook and guidance

• R&D investment was targeted to reach 10% of turnover within three years; plans called for 20 dosage-form and 10 bulk-drug regulatory filings in North America and Europe over 24 months.

• Four new manufacturing plants and expansions were expected to meet major requirements for the next three years; China JV operations were targeted for mid-FY99.

• International growth plans included market development in Ghana and South Africa and continued product registrations across overseas markets.