Vimta Labs (524394) Q4 01/02 earnings summary

Executive summary

• FY02 turnover rose 75% YoY to Rs.1,115.84 lakh; PAT increased to Rs.121.72 lakh from Rs.43.23 lakh, and an 11% maiden dividend was recommended.

• Record export turnover reached Rs.143.89 lakh, supported by higher acceptance of testing data and reports by international regulators and customers.

Financial highlights

• Revenue from operations was Rs.1,115.84 lakh vs. Rs.637.27 lakh in FY01; total income was Rs.1,116.23 lakh vs. Rs.619.38 lakh.

• PBT was Rs.184.72 lakh vs. Rs.47.25 lakh; PAT was Rs.121.72 lakh vs. Rs.43.23 lakh, after regular tax provision of Rs.63 lakh vs. Rs.4.02 lakh.

• EPS was Rs.3.64 vs. Rs.1.20; proposed dividend was 11% (Rs.1.10/share), with Rs.39.69 lakh appropriated for dividend.

• Operating cash flow was Rs.308.03 lakh vs. Rs.107.22 lakh; fixed-asset purchases were Rs.227.08 lakh vs. Rs.83.17 lakh.

Outlook and guidance

• Clinical Laboratory biochemistry and pathology services were planned for Q2 FY03, targeting hospitals, small and medium pathology labs, and pharma clinical-trial samples.

• A nationwide franchise scheme had appointed franchisees, with operations expected to begin in June 2002; infrastructure expansion was planned to meet business targets.

• Management expected further productivity and profit growth, while stating that the increase could not be quantified; new testing services were cited as a performance improvement lever.