Max Financial Services (MFSL) Q4 94/95 earnings summary

Executive summary

• FY95 gross revenue Rs 9,018 lakh; net profit Rs 904.05 lakh vs Rs 775.53 lakh in FY94, with all business units and JVs reporting improved performance.

• Combined business volume across units and JVs reached Rs 30,167 lakh; a 35% dividend was recommended, implying a Rs 267.30 lakh payout.

Financial highlights

• Sales and operating income Rs 8,919.83 lakh vs Rs 6,784.75 lakh; other income Rs 97.69 lakh vs Rs 43.36 lakh.

• Profit Rs 904.05 lakh vs Rs 775.53 lakh; depreciation Rs 474.40 lakh and net interest Rs 491.59 lakh in FY95.

• Manufacturing and other expenses rose to Rs 7,209.72 lakh from Rs 5,286.26 lakh; inventory increased Rs 62.24 lakh vs Rs 115.72 lakh in FY94.

Outlook and guidance

• Rs 350 crore investment planned for a Cephalosporin C/7-ACA plant, expected to be commissioned in early 1996; 7-ACA production would be a first in India.

• Nanjangud bulk-drug plant phase one investment Rs 3,500 lakh, expected to double in phase two over the next two years.

• Cellular, paging and VSAT networks were commissioned and moving from project launches into operating businesses, with management expecting returns in coming years.