Aventis Pharma Limited, formerly called Hoechst Marion Roussel, is a 50.1 per cent subsidiary of Hoechst Marion Roussel, Germany with a strong presence in the therapeutic segments of cardiovascular, anti-diabetic, vaccines, diuretic, analgesic and anti-histamine. For its year ended December 2002, while sales have grown by 13 per cent to Rs 615.70 crore (Rs 544.70 crore), net profit has slid by 8 per cent to Rs 61.10 crore(Rs 66.60 crore). Operational expenditure during the period under review moved up by 16 per cent to Rs 518.50 crore (Rs 446.10 crore). Operating profit of the company declined by a marginal 1 per cent to Rs 97.20 crore (Rs 98.60 crore) with operating profit margin shrinking to 16 per cent from the previous corresponding year’s 18 per cent. Other income during the year was down by 23 per cent to Rs 9.80 crore (Rs 12.70 crore). Interest cost of the company during the period under review is negligible while depreciation has more or less remained same. Tax provision has moved up by 8 per cent to Rs 29.60 crore (Rs 27.30 crore). The scrip currently trading at Rs 261 discounts it full year earnings per share of Rs 26.96 by 10 times.
Bad monsoon and competition continues to affect PTL, which has a track record of beating industry growth. For its third quarter ended December 2002, sales have dropped by 41 per cent to Rs 137.40 crore (Rs 232.50 crore) while net profit has fallen by a significant 62 per cent to Rs 10 crore (Rs 26.60 crore). Operational expenditure has gone down by 39 per cent to Rs 114.80crore (Rs 187.40 crore). Operating profit was down reduced to half from the previous corresponding quarter’s Rs 45.10 crore to the current quarter’s Rs 22.60 crore. OPM has shrunk to 16 per cent from the corresponding quarter’s 19 per cent. While interest cost of this once debt-free company has risen by 33 per cent to Rs 4 crore(Rs 3 crore), depreciation declined 16 per cent to Rs 3.60 crore (Rs 4.30 crore). Tax burden has reduced 55 per cent to Rs 5 crore(Rs 11.20 crore). The stock currently priced at Rs 142.95 discounts its third quarter ended annualised EPS of Rs 6.58 by 21 times.
HINDUSTAN INKS & RESINS
Hindustan Inks is the current market leader in the printing ink industry. For its third quarter ended December 2002, sales were Rs 147.35 crore (Rs 124.59 crore) rising 18 per cent, while net profit has risen by 11 per cent to Rs 11.56 crore (Rs 10.45 crore). Operational expenditure has increased 21 per cent to Rs 120.79 crore (Rs 99.86 crore). Operating profit has gone up 7 per cent to Rs 26.56 crore (Rs 24.73 crore). Operating profit margin slipped to 18 per cent from the previous corresponding quarter’s 20 per cent. Other income has decreased by 6 per cent to Rs 3.05 crore (Rs 3.25 crore). Interest charges have declined by 6 per cent to Rs 10.64crore (Rs 11.33 crore), while depreciation has moved up by 11 per cent to Rs 4.27 crore (Rs 3.84 crore). Tax provision has gone up by 33 per cent to Rs 3.14crore (Rs 2.36 crore). The stock’s current market price is Rs 276.30, which is eight times the third quarter annualised earning per share of Rs 33.85. These numbers are not truly representative, Hinduatan Inks has set up a plant at Minnesota through an overseas subsidiary which as creates waves in the international market for its quality and cost. Maybe someday Indian shareholders will gain.
Media company Creative Eye Ltd has come up with a dismal performance for its third quarter ended December 2002, with sales having gone down 23 per cent to Rs 4.73 crore (Rs 6.11 crore), while net profit has fallen by52 per cent to Rs 0.44 crore (Rs 0.92 crore). Operational expenditure has also fallen by 26 per cent to Rs 4.09 crore (Rs 5.50 crore). Operating profit of the company during the period under review has increased 5 per cent to Rs 0.64 crore (Rs 0.61 crore) taking the operating profit margin to 14 per cent from the previous corresponding quarter’s 10 per cent. Other income during the reported period has increased to Rs 0.53 crore (Rs 0.42 crore). Among the costs, depreciation has risen to Rs 0.46 crore (Rs 0.10 crore). Tax for the current quarter stands at Rs 0.27 crore. The stock is currently traded at Rs 10.65 discounting its third quarter annualised earnings per share of Rs 1.75 by six times.
Company Total Income Net profit Equity O. Income EPS*
Aventis Pharma# 615.70 61.10 23.00 9.80 26.96 Punjab Tractors 137.40 10.00 60.76 — 6.58 Hind Inks & Resins 147.35 11.56 13.66 3.05 33.85 Creative Eye 4.73 0.44 10.03 0.53 1.75
n Figures in Rs crore; * annualised; # yearly result