Strides Pharma Science (STAR) Q4 03/04 earnings summary

Executive summary

• 15-month period marked a turnaround: consolidated PAT reached Rs 439.98m from a loss of Rs 271.95m in the prior 18-month period; period lengths differ.

• Strategic shift toward regulated markets lifted their share of sales to 27% from 8%; management expected the positive trend to continue.

Financial highlights

• Consolidated sales and services were Rs 4,485.26m vs Rs 4,256.00m; total income was Rs 4,624.50m vs Rs 4,276.73m for the prior 18-month period.

• Consolidated EBITDA was Rs 755.08m vs Rs 74.14m; PAT was Rs 439.98m vs a loss of Rs 271.95m. Periods are not directly comparable.

• Consolidated basic and diluted EPS were both Rs 13.13, compared with losses per share of Rs 9.26 and Rs 8.54, respectively.

• Standalone PAT was Rs 291.59m vs Rs 63.17m; proposed dividend was 15%, or Rs 1.50 per equity share.

Outlook and guidance

• Management expected 2005 revenue and profitability gains from STAR commissioning, sterile-products expansion, and regulated-market partnerships.

• Licensing and supply agreements are linked to regulatory filings and approvals; substantial manufacturing business was expected to begin from 2007.

• Focus remained on niche products and regulated-market partnerships, with management expressing confidence in continued positive performance.