Strides Pharma Science (STAR) Q4 05/06 earnings summary

Executive summary

• Consolidated revenue reached Rs. 7,601.98 million in 2006, up 43% YoY; growth investments and acquisitions expanded the global footprint.

• Focus shifted toward difficult-to-manufacture, niche products and regulated markets; margins and PAT faced pressure from business mix, higher costs, interest and depreciation.

Financial highlights

• Consolidated EBITDA was Rs. 1,001.53 million versus Rs. 828.02 million; consolidated PAT after minority interest and associate share was Rs. 402.29 million versus Rs. 485.64 million.

• Standalone total income rose to Rs. 4,550.88 million from Rs. 3,337.84 million; standalone PAT declined to Rs. 361.84 million from Rs. 461.09 million.

• Standalone operating profit (EBITDA) was Rs. 780.41 million versus Rs. 785.64 million; standalone basic EPS was Rs. 9.39 versus Rs. 12.73.

Outlook and guidance

• Priorities include increasing investment in generic product development, especially softgel capsules and sterile parenterals, and expanding partnerships in regulated markets.

• Acquisitions are targeted at manufacturing capabilities, regulatory approvals and product portfolios that can accelerate market access; capacity additions are intended to support growth.

• Promising opportunities were identified in generics and niche-domain leadership; no quantified financial guidance was stated.