HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  


Search:



The Web

Rediff








Business
Portfolio Tracker
Business News
Specials
Columns
Market Report
Mutual Funds
Interviews
Tutorials
Message Board
Stock Talk



Home > Business > Stock Market News > Hot Pursuits

Nicholas Piramal stages recovery

April 25, 2003 12:55 IST

Nicholas Piramal shares only reflected the company's strong FY 2002-03 results in early trades on Friday.

In fact, they sprang forth 5.3% to Rs 231 on BSE barely as trading commenced. The scrip achieved an early high of Rs 232.95 on Friday. A total of 5,791 Nicholas Piramal India shares changed hands on BSE in a few minutes of trading.

The stock witnessed a recovery over the last few trading sessions in the run up to the results. From a recent low of Rs 206.25 on 31 March 2003, the scrip surged 6.35% Rs 219.35 on 24 April 2003. The recovery in the stock came amid intermittent corrections, though.

NPIL has registered a strong growth in sales and profits for the year ended 31 March 2003. The company has turned out gross sales of Rs 1,136.13 crore (Rs 11.36 billion), a growth of 20%. The company has improved its EPS before extraordinary items to Rs 41.0 from Rs 20.3 in the previous year. ROCE stands at 32 % while RONW after extraordinary items is at 32 %.

On a comparable basis, if the sales of the Cardex division (the erstwhile pharma division of ICI India Limited) and Global Bulk Drugs & Fine Chemicals Private Limited, which was merged with the company effective 1 January 2003, are excluded, gross sales growth would be 11 %.

NPIL's domestic formulations business grew at 19.9%. Excluding the sales gained by the acquisition of the erstwhile pharmaceutical division of ICI Ltd, the formulations business grew 13 % against an industry growth rate of 5.7 % (ORG-MARG MAT, March 2003). This business has outperformed the industry and grown market share through a combination of new products and innovative brand management, the company said in a release.

NPIL launched 21 products during the year under review, most of them in high growth lifestyle therapeutic segments such as oral anti-diabetics, anti-depressants, cardio-vascular and anti-arthritics. NPIL's material cost reduced from 52.2 % of net sales in FY02 to 48.9 % of net sales during FY03.

The company has brought down its interest burden over the last 12 months through a debt reduction of Rs 52.56 crore and the substitution of high cost debt with lower cost debt. Net interest for FY03 has come down 34.4 %, to Rs 20.57 crore. NPIL obtained a tax break of Rs 26.4 crore on account of the amalgamation of group company Global Bulk Drugs and Fine Chemicals which is a bulk drugs company. NPIL has strengthened its balance sheet by fully writing off the unamortised deferred revenue expenditure of FY02 by taking an exceptional charge of Rs 34 crore in its P&L for FY03.

BSE code: 500302

More Hot Pursuits

Source: www.capitalmarket.com

Intra-Day Market Report



Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor



Related Stories


Nicholas Piramal gets nod on merger

NPIL goes for a contract killing

Nicholas Piramal Q3 net at Rs 21.19 cr








HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  
© 2003 rediff.com India Limited. All Rights Reserved.