Biogen Pharmachem Industries (531752) Q4 07/08 earnings summary

Executive summary

• FY08 total income was Rs 85,242,357 versus Rs 2,768,802,649 in FY07; the financial highlights report net profit of Rs 7,139,831, while the accounts and EPS note show a loss of Rs 2,436,780.

• Trading operations expanded into commodities, including agro-based products and precious metals; plans also included diversifying into wind power generation.

Financial highlights

• Total income Rs 85,242,357 vs Rs 2,768,802,649 YoY; expenses Rs 84,449,954 vs Rs 2,760,461,848.

• Profit before depreciation and tax Rs 792,403 vs Rs 8,340,801; depreciation Rs 3,229,183 vs Rs 2,832,267.

• Financial highlights report net profit Rs 7,139,831 vs Rs 5,508,534; the balance-sheet schedule instead carries reserves of Rs 7,139,831 after a reported loss of Rs 2,436,780.

• Trading income was Rs 85,095,119 and wind-mill project income Rs 120,485, compared with Rs 2,764,067,319 and Rs 6,783,570, respectively, in FY07.

Outlook and guidance

• Management expected turnover and profitability to improve with larger-scale commodity trading and diversification into power generation.

• Planned development of a wind-turbine power generation plant was described as relatively low-capital, with potential returns and tax benefits.

• Gold, silver, other precious metals, diamonds, imports and exports were identified as potential trading opportunities.