Max Financial Services (MFSL) Q4 98/99 earnings summary

Executive summary

• Period revenue and other income reached Rs 288.05 crore and PAT Rs 176.47 crore, with results boosted by a one-time Rs 165 crore interim dividend from MTVL; the period covered 14 months versus 13 months previously.

• Existing Pharma and Speciality Products units improved, while portfolio changes included divestments and a strategic shift toward healthcare, life insurance and IT.

Financial highlights

• Revenue and other income were Rs 288.05 crore versus Rs 119.42 crore; PBT was Rs 178.94 crore versus Rs 10.60 crore, and PAT Rs 176.47 crore versus Rs 8.57 crore; periods were 14 and 13 months, respectively.

• Operating profit before interest, depreciation and tax was Rs 196.99 crore; interest was Rs 10.24 crore and depreciation Rs 7.81 crore.

• Other income of Rs 179.90 crore included the Rs 165 crore special interim dividend from MTVL, alongside interest, dividends and business-sale gains.

• EPS was Rs 15.30; the special interim dividend was Rs 100 per share, and a final dividend of Rs 4.50 per share was recommended.

Outlook and guidance

• Health care, life insurance and IT were selected for further evaluation; investment proposals are subject to feasibility work and minimum return-on-investment benchmarks.

• Healthcare plans included services in and around New Delhi, with future opportunities in managed care, clinical research and medical education alongside Harvard Medical International.

• Carbamazepine capacity expansion was targeted for completion in Q4 1999; European exports and contract manufacturing, custom synthesis and product development were growth avenues.

• Max Foil was preparing a European launch in November 1999; healthcare, life insurance and IT strategy remained contingent on feasibility studies and, for private life insurance, enabling legislation.