NEW DELHI, July 2: Buoyed by a 1:1 bonus issue, a 30 per cent dividend and a net profit growth of 87 per cent, Aurobindo Pharma Ltd has shot into the limelight on bourses. The final dividend of 30 per cent is on the back of a 20 per cent interim dividend. Notwithstanding the current volatile market conditions, the stock has appreciated by more than 20 per cent between June 23 and July 1, rising from Rs 189 to Rs 227 on BSE.During its previous rally, the APL scrip had appreciated from Rs 69 on October 15, 1997 to Rs 241 on June 1. Thereafter, till June 22, the scrip fluctuated between Rs 180 and Rs 240. However, given the low equity base of Rs 4.73 crore, there has not been any significant change in the daily trading volumes.
For the fiscal 1998, Hyderabad-based APL has reported a 33 per cent jump in sales to Rs 296.79 crore against previous fiscal's Rs 222.46 crore. Growth in income from exports, however, was only 4 per cent -- rising from Rs 90.55 crore to Rs 93.99 crore. While total expenditure went upby 31 per cent to Rs 256.94 crore from Rs 195.59 crore, interest outgo was up from Rs 10.55 crore to Rs 11.87 crore.
Depreciation provisions and tax outgo were marginally higher for fiscal 1998. While depreciation was Rs 2.22 crore (Rs 1.70 crore), tax provisions were Rs 1.97 crore (Rs 1.89 crore). During the period under consideration, APL earned a net profit of Rs 23.79 crore -- a whooping 87 per cent jump over the previous fiscal's Rs 12.73 crore.
The APL board has proposed a liberal 1:1 bonus offer and a final dividend of 30 per cent. Earlier the board had declared an interim dividend of 20 per cent, thus taking the total dividend payout to 50 per cent.
On a small equity base of Rs 4.73 crore, the earnings per share work out to Rs 50.35, up substantially from Rs 26.91 a year ago. The current book value is Rs 147. At the current market price of Rs 241, the price/earnings ratio is 4.79.
During fiscal 1998, the company has also surpassed the figures it had projected during its December, 1994 offerfor sale. It had projected a net profit of Rs 13.23 crore from a sales of Rs 167.21 crore. While APL's actual sales at Rs 296.779 crore is 77 per cent higher than the projected, actual net profit stood higher by 80 per cent. The projected EPS was Rs 28.01 while the actual is Rs 50.35 crore.
In its two manufacturing units at Hyderabad and Pondichery, the company manufactures semi-synthetic penicillin, including ampicillin and amoxycillin.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
