Vimta Labs (524394) Q4 96/97 earnings summary

Executive summary

• FY1996-97 turnover fell to Rs. 323.87 lakh from Rs. 401.19 lakh; the year ended with a first-ever net loss of Rs. 92.29 lakh, versus profit of Rs. 25.73 lakh.

• GLP certification, achieved on 28 April 1997, opened a path to market testing services abroad; early FY1997-98 enquiries were encouraging.

Financial highlights

• Turnover was Rs. 323.87 lakh, down from Rs. 401.19 lakh YoY; gross profit before interest, depreciation and taxes was Rs. 106.41 lakh versus Rs. 194.49 lakh.

• Net loss after tax was Rs. 92.29 lakh, compared with net profit of Rs. 25.73 lakh in FY1995-96; no tax provision was made.

• Finance charges and interest rose to Rs. 143.19 lakh from Rs. 121.47 lakh; depreciation was Rs. 41.29 lakh versus Rs. 39.80 lakh.

Outlook and guidance

• First-quarter performance was described as encouraging, with national and international clients making a good number of enquiries; directors expected improved future operating results if the trend continued.

• GLP certification was identified as a prerequisite for marketing chemical, drug and bioscience services abroad.