Lincoln Pharmaceuticals (531633) Q4 97/98 earnings summary

Executive summary

• FY1997-98 turnover reached Rs 1,840.08 lakh vs Rs 1,759.33 lakh; net profit was Rs 125.32 lakh vs Rs 113.60 lakh.

• Khatraj expansion began commercial production in Sep 1997; delayed implementation and industry recession left sales well below projection.

Financial highlights

• Profit before interest, depreciation and tax was Rs 228.22 lakh vs Rs 216.08 lakh, up 5.62% YoY; profit before tax was Rs 148.32 lakh vs Rs 154.60 lakh.

• Net profit after tax was Rs 125.32 lakh vs Rs 113.60 lakh; tax provision fell to Rs 23.00 lakh from Rs 41.00 lakh.

• Turnover of Rs 1,840.08 lakh was below the Rs 4,493.70 lakh projection; profit after tax of Rs 125.32 lakh was below the Rs 499.06 lakh projection.

• Export sales were Rs 363.79 lakh vs Rs 304.77 lakh; domestic sales were Rs 1,476.30 lakh vs Rs 1,454.56 lakh.

Outlook and guidance

• Full benefit of the modernized Khatraj plant was expected in FY1998-99; process-efficiency measures and new products were underway.

• Performance was expected to improve substantially; efforts were also focused on boosting formulation exports.