Strides Pharma Science (STAR) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 total income rose 37% to Rs. 2,401.27 million; PAT increased 21% to Rs. 160.35 million despite higher interest costs.

• Overseas expansion and new-market growth supported a push toward global generics and soft-gelatin leadership; management anticipated continued growth from new markets.

Financial highlights

• Turnover grew 36% to Rs. 2,365.45 million; EBITDA rose 24% to Rs. 559.65 million, while PAT increased to Rs. 160.35 million from Rs. 132.93 million.

• PBT was Rs. 197.95 million; interest expense rose to Rs. 246.95 million from Rs. 210.73 million, reflecting borrowings for overseas investments.

• Basic and diluted EPS was Rs. 8.28 versus Rs. 7.93; proposed equity dividend remained 6%.

• Export pharmaceutical formulations were 76% of sales versus 67% prior year; export earnings were Rs. 1,727.56 million.

Outlook and guidance

• Growth was expected from new markets, with greater emphasis on expanding customer bases and sustaining top-line growth while controlling costs.

• Brazil facility commissioning and validation, added US production lines, and new product launches were expected to support future growth.

• More than 30 additional Latin American product registrations were envisaged for the forthcoming year, following 50+ registrations.

• Management expected substantial interest-cost reduction in the forthcoming year following debt restructuring and equity-funded repayments.