Max Financial Services (MFSL) Q4 00/01 earnings summary

Executive summary

• Shift into services accelerated with launches in healthcare, life insurance and IT, alongside expansion of clinical research; traditional pharmaceutical and speciality businesses remained profitable.

• Lower investment income and a Rs 28.63 crore provision for investment diminution weighed on parent-level earnings, despite growth in traditional businesses.

Financial highlights

• Sales and other income Rs 158.74 crore vs Rs 141.71 crore; PBT Rs 7.38 crore vs Rs 42.20 crore; PAT Rs 5.13 crore vs Rs 37.20 crore. Current year covers 12 months vs prior 9 months.

• Investment income fell to Rs 41.79 crore from Rs 60.56 crore; operating profits before interest, depreciation and tax declined as surplus funds shifted into new businesses.

• EPS Rs 2.22; recommended dividend Rs 3.50 per equity share of Rs 10.

Outlook and guidance

• Max Healthcare planned additional clinics and Medcentres in 2001-02; work on Max General Hospital was expected to start during the year.

• HealthScribe planned to recruit at least 600 transcriptionists in the current year to expand output and revenue.

• Max Ateev planned to expand marketing coverage in the US and open a London office; engineering staff were expected to grow from 83 to 200 by the next year-end.

• Max Pharma expected Carbamazepine exports to improve after regulatory formalities; Max Speciality Products expanded BOPP capacity by 6,000 tonnes annually.