Lincoln Pharmaceuticals (531633) Q4 04/05 earnings summary

Executive summary

• FY 2004-05 sales rose to Rs. 3,790.57 lacs from Rs. 3,693.32 lacs; net profit after tax fell to Rs. 152.94 lacs from Rs. 184.16 lacs.

• Proposed dividend remained 12%; management described the outlook for 2005-06 as cautiously optimistic, supported by new products, wider geographic coverage and job-work contracts.

Financial highlights

• Sales were Rs. 3,790.57 lacs vs Rs. 3,693.32 lacs; total income, including other income and stock variation, was Rs. 3,879.97 lacs vs Rs. 3,639.71 lacs.

• Profit before tax was Rs. 206.18 lacs vs Rs. 233.30 lacs; net profit after tax was Rs. 152.94 lacs vs Rs. 184.16 lacs.

• Depreciation was Rs. 49.58 lacs vs Rs. 42.14 lacs; current tax provision was Rs. 55.73 lacs vs Rs. 48.00 lacs, with deferred tax added back of Rs. 2.49 lacs vs Rs. 1.14 lacs.

• Proposed dividend was Rs. 91.33 lacs, with dividend tax of Rs. 11.94 lacs; Rs. 10 lacs was appropriated to general reserve.

Outlook and guidance

• Management expected to grow market share through new product launches, broader geographic coverage, larger job-work contracts and additional work for multinational companies; FY 2005-06 outlook was cautiously optimistic.

• Brand building, expanding the product range and stabilizing the growth trajectory were identified as priorities for the coming years.