Fredun Pharmaceuticals (539730) Q4 05/06 earnings summary

Executive summary

• FY06 sales turnover fell to Rs 401.20 lakh from Rs 937.65 lakh; net profit was Rs 3.61 lakh versus Rs 4.62 lakh.

• Beta-lactam manufacturing stopped to meet separate-facility regulations; the business plans to source those products externally and expand exports.

Financial highlights

• Revenue from sales and other income was Rs 401.20 lakh, down from Rs 937.66 lakh; sales alone were Rs 394.76 lakh versus Rs 923.40 lakh.

• Profit before depreciation was Rs 23.03 lakh versus Rs 30.42 lakh; depreciation was Rs 19.57 lakh versus Rs 19.11 lakh.

• PBT was Rs 1.67 lakh versus Rs 7.34 lakh; FY06 included a Rs 1.78 lakh prior-period adjustment, while PAT was Rs 3.61 lakh versus Rs 4.62 lakh.

• Interest and finance charges rose to Rs 25.41 lakh from Rs 20.38 lakh; no dividend was recommended.

Outlook and guidance

• Plans included sourcing beta-lactam products externally, expanding the export base, registering more products and introducing new drugs.

• Management expected turnover and profitability to improve; ISO 9001:2000 certification was targeted by December 2006.