Max Financial Services (MFSL) Q4 95/96 earnings summary

Executive summary

• FY 1995-96 gross revenue was Rs. 1,129.90 million and net profit was Rs. 120.11 million; combined business volume rose to Rs. 4,970 million from Rs. 3,017 million.

• The year focused on investment, strategic growth and restructuring, with new businesses and projects launched across telecom, pharmaceuticals, specialty products and communications.

• A 35% dividend was recommended for the year.

Financial highlights

• Gross revenue reached Rs. 1,129.90 million versus Rs. 901.75 million; sales and other operating income was Rs. 1,098.78 million versus Rs. 891.98 million.

• Profit before tax was Rs. 120.11 million, up from Rs. 90.40 million; depreciation was Rs. 49.68 million and interest was Rs. 61.87 million.

• Profit available for appropriation was Rs. 190.18 million; Rs. 50 million was transferred to general reserves and Rs. 28.07 million proposed as dividend.

• Total assets and funds grew to Rs. 1,810.61 million from Rs. 926.43 million; investments reached Rs. 582.87 million and net fixed assets Rs. 895.94 million.

Outlook and guidance

• Strategic ambition: reach targeted business volume of Rs. 2,000 crore by 2000, supported by investment and expansion into value-added and specialty products.

• Nanjangud bulk-drugs production began in April 1996; further investment is expected, with Azithromycin production underway and Carbamazepine planned from the basic stage.

• Cellular services were expected to build a leading industry position; MaxPage planned a state-wide Punjab launch, and metallised film capacity was expected to reach high utilisation relatively quickly.

• R&D plans included higher-value application films, improved efficiency, expanded leather-finishing systems and new bulk drugs for domestic and international markets.