Kopran

The main reason behind the dip in margins in second half may be due to a decline in prices of bulk drugs.

However, sales increased by 20.26 per cent to Rs 344.85 crore. This is attributed to the commissioning of the second unit of formulations as well as increased growth in exports. Exports contributed 41 per cent of the total turnover at Rs 142 crore.

Other income increased by 49.57 per cent to Rs 5.25 crore.

The companys interest burden increased drastically by 51.25 per cent to Rs 15.08 crore. This is because of the requirement of funds for capital expenditure as well as extra working capital for the formulation plant.

 

The start up of the formulations plant also led to increase in depreciation by 43.8 per cent to Rs 7.78 crore. The companys tax liability increased by 100 per cent to Rs 5 crore which is paid at a rate of around 11 per cent.

It has set up an ambitious expansion plan to set up another formulation plant to manufacture sterile cephalosporins. With the company now concentrating on the high margin formulations and the export markets, it is expected to perform well in the current year.

The Kopran scrip has been moving in a narrow range. At the current price of Rs 197, the scrip discounts the earnings 7 times.