Starsource Multitrade (506365) Q4 96/97 earnings summary

Executive summary

• Net profit after tax was Rs. 25,43,790, including a Rs. 23,53,250 prior-year tax provision write-back; profit before tax was Rs. 2,20,540.

• Factory activity resumed, with pharmaceutical formulations produced under loan-licence arrangements and Fine Chemicals plant upgrades and product trials progressing.

• BIFR deregistered the business on 30 July 1996, ending its classification as a sick industrial company.

Financial highlights

• Total income was Rs. 2,56,77,135 versus Rs. 1,91,67,715 in FY 1995-96; total expenditure was Rs. 2,40,28,545 versus Rs. 1,37,64,107.

• Gross profit was Rs. 16,48,590, down from Rs. 54,03,608 YoY; depreciation was Rs. 14,28,050 versus Rs. 12,12,936.

• Profit after tax was Rs. 25,43,790 versus Rs. 18,37,422; excluding the tax provision write-back, reported PBT was Rs. 2,20,540.

• Profit carried to the balance sheet was Rs. 30,51,212, including Rs. 5,07,422 brought forward.

Outlook and guidance

• Spare pharmaceutical capacity was intended for a new Generic Division formulations range, then under development.

• Fine Chemicals production trials for nimesulide, PMPA and chlorzoxazone were successful; the products were described as having local and export demand.