Lincoln Pharmaceuticals (531633) Q4 06/07 earnings summary

Executive summary

• FY2006-07 sales rose 12.25% to Rs 6,339.39 lakh; profit after tax increased to Rs 304.76 lakh from Rs 245.14 lakh.

• Growth came amid stiff domestic pharmaceutical competition; the outlook emphasized new products, wider geographic reach and job-work contracts.

Financial highlights

• Sales were Rs 6,339.39 lakh versus Rs 5,647.69 lakh; total income was Rs 6,546.01 lakh versus Rs 5,957.98 lakh.

• Profit before tax was Rs 440.22 lakh versus Rs 330.81 lakh; profit after tax was Rs 304.76 lakh versus Rs 245.14 lakh.

• Materials consumption declined to Rs 2,026.53 lakh from Rs 2,142.67 lakh, while personnel expenses rose to Rs 558.02 lakh from Rs 387.52 lakh.

• Proposed dividend remained 12%; proposed dividend was Rs 91.33 lakh and dividend tax Rs 15.48 lakh.

Outlook and guidance

• FY2007-08 prospects were described as cautiously optimistic, with an aim to stabilize growth and increase market share in existing markets.

• Priorities included new product launches, broader geographic coverage, job work for multinational companies and expansion of the existing product range.