Wokhardt Life Sciences surged on Tuesday after the company's results indicated that it had soared strongly into the black from losses in the previous corresponding quarter.
The stock of Wockhardt Life Sciences, in response, leaped up 9.2% to Rs 22.55 on BSE in just over an hour of trading. Around 4,600 Wockhardt Life Science shares were traded on BSE by then.
The Q4 results have brought lustre to an otherwise dull stock. The scrip moved in a band of Rs 21-28 in the last few months. The average daily trading volumes on the counter on BSE in the last one year till 28 March 2003 stood at 8,416 shares.
WLSL has posted a net profit of Rs 15 crore for the quarter ended 31 December 2002 as against a net loss of Rs 17.70 crore for the quarter ended 31 December 2001. Total income fell to Rs 26.10 crore in Q4-02 compared to Rs 45.60 crore in Q4-01.
For FY 2002, the company posted a net profit of Rs 15.80 crore as against a net loss of Rs 27.30 crore in FY 2001. Total income in FY 2002 stood at Rs 150.20 crore (Rs 1.5 billion) as against Rs 200.40 crore (Rs 2 billion) in FY 2001.
However, the Q4 and FY 2002 results are not comparable since WLSL had sold its IV fluids business with effect from 17 July 2002. The results for the corresponding quarter and year ended 31 December 2001 include the performance of the IV fluids business also.
WLSL had hived off its IV fluids business to Baxter India, the Indian arm of Baxter International Inc. for about Rs 195 crore (Rs 1.95 billion). WLSL had decided to use the proceeds of the sale towards clearing off its debts.
After the offloading of the IV business, WLSL had decided to concentrate on its bio-agro business - Biostadt Agrisciences, which is currently growing at 33% per annum.
WLSL was formed after Wockhardt Ltd restructured itself, spinning off its parenterals business and the Rs 100 crore (Rs 1 billion) agribusiness into a separate company in 2000.
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