Wockhardt's lot in the market took a beating for the second day running on Monday, ever since the company announced poor Q4 and FY 2002 results.

The scrip of Wockhardt plunged 5% to Rs 347 on BSE in morning trades on Monday. Around 13,800 shares changed hands on the counter on BSE. Wockhardt had plunged a whopping 12% on Friday after the company announced results after trading hours Thursday.

With this, the scrip has shed 16.4% in the two trading sessions since the results were declared. The stock is usually thinly traded, but has been witnessing some volatility lately, though within a band of Rs 500-Rs 414. With the two-day fall, the stock has breached the lower band.

Wockhardt has reported disappointing results for the fourth quarter and year-ending 31 December 2002. Tightening of inventory at the dealer level, resistance by the unionised field force to the implementation of the new incentive-based remuneration and a substantial decline in Hepatitis-B sales impacted the company's performance.

The company is holding a post-results conference call today. Analysts, however, say that a sharp setback in the stock provides an oppourtunity to buy the stock with a one year perspective. The potential positive triggers for the stock being the impending launch of recombinant Insulin and possible Geneva approval for its Aurangabad plant, qualifying it to automatically bid for global Hepatitis-B vaccine tenders by WHO/other NGOs.

Wockhardt plans to introduce two new products - recombinant human insulin and Interferon alpha 2b - in the domestic market this year.

Wockhardt severed its relations with the Federation of Medical Representatives Association of India a few months back.

The company posted a sharp 43.8% fall in Q4 ended 31 December 2002 net profit to Rs 18.30 crore compared to Rs 32.60 crore in the corresponding period last year. Total income proved flat at Rs 178.10 crore (Rs 1.78 billion) from Rs 178.40 crore (Rs 1. 78 billion).

For the full year 2002 (year ended 31 December 2002), net profit rose just 6.5% to Rs 108.90 crore (Rs 1.08 billion) from Rs 102.20 crore (Rs 1.02 billion). Total income increased 13.8% to Rs 743.30 crore (Rs 7.43 billion) from Rs 653 crore (Rs 6.53 billion). On a consolidated basis, the Wockhardt group's net profit has declined 2.9% in FY 2002 to Rs 105 crore (Rs 1.05 billion) from Rs 108.20 crore (Rs 1.08 billion). Total income improved 9.5% to Rs 810.60 crore (Rs 8.1 billion).

Wockhardt's focus is on chronic therapies, mainly biotech products in diabetics and oncology, with a thrust on vaccines and generics with delivery-based products. Market men feel this thrust on the high margin business holds the key to Wockhardt's future growth.

In 2000, the company restructured itself, spinning off its parenterals business and the Rs 100-crore (Rs 1 billion) agribusiness into a separate company, Wockhardt Life Sciences. With this change came a shift away from the product portfolio dominated by low-margin acute therapy products - anti-infectives and the pain-relievers - towards biotech and high-margin products.

Meanwhile, Wockhardt's board has recommended a dividend of Rs 6.50 per share or 65% for FY 2002.