Fredun Pharmaceuticals (539730) Q4 03/04 earnings summary

Executive summary

• FY04 sales and other income rose to Rs 710.41 lakh from Rs 599.15 lakh; the year ended with a net loss of Rs 14.11 lakh, while cumulative net loss reached Rs 146.24 lakh.

• Operations were constrained by working-capital shortages; directors expected improvement if additional bank funding was secured, supported by export orders on hand.

Financial highlights

• Turnover and other income increased 18.57% YoY; profit before interest and depreciation rose to Rs 24.95 lakh from Rs 23.04 lakh, up 8.29%.

• Loss before exceptional items was Rs 13.87 lakh vs Rs 19.28 lakh; exceptional items were Rs 0.68 lakh vs Rs 27.00 lakh, resulting in PBT loss of Rs 13.19 lakh vs profit of Rs 7.72 lakh.

• Net loss after tax was Rs 14.11 lakh vs profit of Rs 2.72 lakh; sales were Rs 672.41 lakh and other income Rs 38.00 lakh.

Outlook and guidance

• Directors expected a better outlook once liquidity issues were resolved, citing good export orders on hand and planned product registrations in Nigeria, Uganda, Sri Lanka and Bangladesh.

• Staged plant upgradation and expansion were planned; funding needs and instrument details remained under consideration.