Poly Medicure (531768) Q4 03/04 earnings summary

Executive summary

• FY ended Mar. 31, 2004 sales and other income reached Rs. 5,031.84 lakh, up 19% YoY; PBT rose 16.6% and PAT 10.7%.

• Export sales were Rs. 4,198.20 lakh, equal to 83.8% of sales; products reached more than 40 countries.

• First expansion phase entered commercial production in February 2004, increasing capacity; a second phase was targeted for completion by FY-end.

Financial highlights

• Sales and other income: Rs. 5,031.84 lakh vs Rs. 4,226.75 lakh; operating profit Rs. 903.74 lakh vs Rs. 835.58 lakh.

• PBT was Rs. 618.24 lakh vs Rs. 530.08 lakh; PAT was Rs. 433.32 lakh vs Rs. 391.54 lakh.

• Net sales were Rs. 4,884.41 lakh; export incentives were Rs. 124.67 lakh, compared with Rs. 78.59 lakh in FY03.

• Adjusted for the Rs. 42.78 lakh benefit from a changed export-incentive accounting policy, reported FY04 export incentives and profit were higher by that amount.

• Recommended dividend: 15%, or Rs. 1.50 per Rs. 10 equity share.

Outlook and guidance

• Higher production capacity supported a “reasonably bright” outlook; second-phase expansion was expected to finish by the end of FY05.

• Profitability remained dependent on domestic and export competition, currency movements, and overall economic development.

• New products were expected to contribute to business growth; customer involvement from product conception and ongoing technology upgrades supported the pipeline.