Lincoln Pharmaceuticals (531633) Q4 96/97 earnings summary

Executive summary

• FY1996-97 sales reached Rs. 1,759.33 lakh, up 23% YoY; profit after tax was Rs. 113.60 lakh, near the prior-year Rs. 112.70 lakh.

• Delayed implementation and infrastructure at the Khatraj plant left sales well below the Rs. 3,737.60 lakh projection; commercial production was expected from mid-September 1997.

• A 15% prorated dividend was recommended for the year ended 31 March 1997.

Financial highlights

• Sales were Rs. 1,759.33 lakh vs Rs. 1,435.41 lakh in FY1995-96; gross profit before interest, depreciation and tax was Rs. 216.08 lakh vs Rs. 186.15 lakh.

• Profit before tax was Rs. 154.60 lakh vs Rs. 140.35 lakh; tax provision rose to Rs. 41.00 lakh from Rs. 27.65 lakh, keeping PAT nearly flat.

• Other income was Rs. 89.08 lakh, including interest income; total income was Rs. 1,904.52 lakh vs Rs. 1,574.83 lakh.

• Proposed dividend was Rs. 87.78 lakh, with Rs. 10 lakh transferred to general reserve and Rs. 64.94 lakh carried forward.

Outlook and guidance

• Khatraj expansion was progressing, with commercial production expected from mid-September 1997; completion was expected to substantially increase sales and profitability.

• Energy conservation initiatives reduced electricity consumption and improved productivity; additional measures were expected to lower energy costs further.