Strides Pharma Science (STAR) Q4 00/01 earnings summary

Executive summary

• FY2000-01 revenue grew 12% to Rs.1,768.15 million; EBITDA rose to Rs.461.48 million, while net profit fell to Rs.140.40 million amid higher interest costs and the absence of prior-year gains.

• Strategic shift from Indian exporter to global manufacturer, with investments and operations spanning the US, Switzerland, Mexico and Brazil.

Financial highlights

• Total income Rs.1,768.15 million, up from Rs.1,656.92 million; turnover Rs.1,740.56 million, up 12% YoY.

• Operating profit/EBITDA Rs.461.48 million vs Rs.446.97 million in reported results; management cited prior-year EBITDA of Rs.360.23 million before extraordinary income.

• Net profit Rs.140.40 million vs Rs.245.68 million; profit after tax after prior-year income-tax adjustments was Rs.132.93 million.

• Interest expense rose to Rs.221.50 million from Rs.135.02 million; cash profit was Rs.231.49 million vs Rs.311.95 million.

• Declared 6% dividend; EPS Rs.8.37 and net worth Rs.1,572 million.

Outlook and guidance

• Management expected global investments to support stronger growth and profitability over the longer term, with growth from existing and new customers.

• Mexico facility expected to begin commercial production in FY2001-02 after validation; liquid injectables and Russian OTC business were expected to grow faster.

• CRAM volumes were expected to rebound after correcting a principal-customer decline; focus remained on revenue growth, operating margins and cost control.

• South African approvals, Australian TGA approval and entry into French African markets were expected to support additional registrations and sales.