Max Financial Services (MFSL) Q4 92/93 earnings summary

Executive summary

• Amalgamation effective Jan. 1, 1993 combined the erstwhile Max India Limited with Maxxon India Limited; FY results include only three months of the former entity, limiting year-over-year comparability.

• The post-merger business was reorganized into Pharma, Electronics, BOPP Films and Telecom groups, alongside new international expansion plans.

Financial highlights

• FY gross profit was Rs. 373.91 lakhs; net profit was Rs. 180.62 lakhs after Rs. 193.29 lakhs depreciation. Profits were essentially for Jan.–Mar. 1993, the post-amalgamation period.

• Rs. 15.00 lakhs was transferred to General Reserve and Rs. 14.81 lakhs to Debenture Redemption Reserve; the balance carried forward was Rs. 583.24 lakhs.

• A 20% dividend was recommended for the post-amalgamation period, pro rata on 7,637,200 shares; proposed payout was Rs. 38.19 lakhs, subject to shareholder approval.

Outlook and guidance

• A 50-acre bulk drugs facility near Mysore was under development, with ~Rs. 30 crore capital outlay and commissioning expected within 15 months; planned products include Carbamazepine and Terfenadine.

• Max-GB Limited’s growth plans require additional funding, with equal participation proposed from the two 50:50 shareholders.

• Formulation facilities were being upgraded for expected demand growth; new turnkey PCB plant projects and telecom service opportunities were also targeted for future growth.