Lincoln Pharmaceuticals (531633) Q4 03/04 earnings summary

Executive summary

• FY2003-04 sales rose to Rs 369.33 crore from Rs 335.62 crore; net profit increased to Rs 1.84 crore from Rs 1.44 crore. Management described the year as good and reported 10% sales growth.

• Growth plans center on new product launches, wider geographic reach and job-work contracts; management was cautiously optimistic for FY2004-05.

Financial highlights

• Sales were Rs 369.33 crore versus Rs 335.62 crore; export sales were Rs 65.70 crore and domestic sales Rs 303.63 crore.

• Profit before tax was Rs 2.33 crore versus Rs 1.77 crore; profit after tax was Rs 1.84 crore versus Rs 1.44 crore.

• Total expenditure was Rs 34.06 crore versus Rs 32.88 crore; materials consumption rose to Rs 20.94 crore from Rs 19.22 crore.

• Operating cash flow was Rs 1.85 crore versus an outflow of Rs 0.03 crore; cash and bank balances ended at Rs 0.78 crore.

• Foreign exchange earnings were Rs 6.57 crore versus Rs 5.09 crore; foreign currency expenditure was Rs 0.18 crore versus Rs 0.24 crore.

Outlook and guidance

• FY2004-05 outlook was cautiously optimistic, targeting higher share in existing markets through product launches and expanded geographic coverage.

• Planned growth avenues included larger job contracts and job work for multinational companies.

• Brand-building in the market was an ongoing focus.