Fredun Pharmaceuticals (539730) Q4 04/05 earnings summary

Executive summary

• FY 2004-05 turnover rose 32% to Rs 937.65 lakh; profit after tax was Rs 4.62 lakh, versus a Rs 14.11 lakh loss in FY 2003-04.

• Improved volumes and lower direct, indirect and finance costs supported the recovery; export orders and capacity expansion underpin a better outlook.

Financial highlights

• Sales and other income totaled Rs 937.65 lakh, up from Rs 710.41 lakh; total expenditure was Rs 884.12 lakh versus Rs 682.64 lakh.

• Profit before interest and depreciation was Rs 50.79 lakh, versus Rs 24.95 lakh; profit before tax was Rs 7.34 lakh, versus a Rs 13.19 lakh loss.

• Profit after tax was Rs 4.62 lakh, compared with a Rs 14.11 lakh loss; prior-period adjustment was a Rs 3.97 lakh charge.

• Export earnings were Rs 547.79 lakh, versus Rs 330.77 lakh; foreign exchange outgo was Rs 19.53 lakh.

Outlook and guidance

• Export orders on hand and planned product registrations in Nigeria, Uganda, Sri Lanka and Kenya supported management’s more positive outlook.

• Expansion and modernization took place during FY 2004-05; further production-capacity expansion using advanced machinery was planned.