Vista Pharmaceuticals (524711) Q4 05/06 earnings summary

Executive summary

• FY06 reported profit of Rs 16.27 crore was driven by Rs 17.00 crore of exceptional income, mainly IDBI debt waivers and reversal of prior Managing Director remuneration provision.

• The one-time IDBI settlement cleared term loans; proceeds from preferential share issues supported settlement and facility upgrades.

• No dividend was recommended for FY06.

Financial highlights

• Total income was Rs 18.05 crore vs Rs 1.03 crore in FY05; FY06 included Rs 17.00 crore in provisions no longer required, including IDBI waivers and the remuneration reversal.

• Export turnover was Rs 103.81 lakh vs Rs 102.21 lakh in FY05; expenditure was Rs 1.78 crore vs Rs 4.41 crore.

• Reported profit for the year was Rs 16.27 crore vs loss of Rs 3.38 crore in FY05; the auditor noted profits were higher by Rs 16,99,99,358 due to exceptional items.

Outlook and guidance

• Management expected improved contribution in FY07, citing new products, technology and plans to optimize operations.

• US-market introduction of generic Bactrim was anticipated; facility upgrades were underway to manufacture the product.

• Planned formulation technologies included sustained-release, delayed-release, effervescent, dispersible and chewable tablets.