Vimta Labs (524394) Q4 05/06 earnings summary

Executive summary

• FY05/06 revenue reached Rs.5,505.71 lakh amid capacity constraints that limited acceptance of new orders; EBITDA and PAT declined YoY, primarily due to higher depreciation on new fixed assets.

• Capacity expansion centered on the Genome Valley life sciences campus and advanced molecular research capabilities to address global outsourcing demand.

Financial highlights

• Gross revenue was Rs.5,505.71 lakh vs. Rs.5,257.86 lakh in FY04/05; income from operations was Rs.5,420.16 lakh vs. Rs.5,219.52 lakh.

• EBITDA was Rs.2,577.79 lakh vs. Rs.2,683.49 lakh; PAT was Rs.1,349.90 lakh vs. Rs.1,412.44 lakh.

• Export income rose 9% to Rs.2,288.70 lakh from Rs.2,099.44 lakh; domestic testing income was Rs.3,131.46 lakh vs. Rs.3,120.08 lakh.

• Dividend recommended at 40%, or Rs.0.80 per Rs.2 equity share; EPS was Rs.7 on the subdivided share basis vs. Rs.39 on the prior Rs.10 share basis.

Outlook and guidance

• FY06/07 revenue estimated at Rs.90–100 crore, EBITDA margin at 48% ±2%, and PAT margin at 25% ±2%.

• Management expected FY06/07 growth to match or exceed growth rates recorded during 2000–05; planned inorganic expansion could add revenue if materialized.

• Genome Valley facility was nearing completion; advanced genomics and proteomics research facilities were expected to be commissioned by quarter-end.