Viyash Scientific (512529) Q4 03/04 earnings summary

Executive summary

• FY04 was a transition year following the amalgamation, which transferred the bulk-drug and formulation operations and expanded the business into pharmaceuticals.

• Albendazole production was standardized at Mahad; growth plans include capacity debottlenecking, injectables, an antiprotozoal product and veterinary vaccines.

Financial highlights

• FY04 operating income was ₹1,988.07 lakh; other income was ₹31.56 lakh and the stock movement reduced income by ₹14.73 lakh.

• Profit before tax was ₹409.03 lakh and net profit after tax and adjustments was ₹295.51 lakh; FY03 figures are not comparable after the amalgamation.

• Cash and bank balances at 31 March 2004 were ₹101.00 lakh, versus ₹3.16 lakh at FY03 year-end.

Outlook and guidance

• FY05 bottom-line growth was projected at more than 50%, based on debottlenecking, formulation growth and savings from 100% EOU status, excluding acquisitions.

• Injectable capacity was planned, with a proposed antiprotozoal-unit project expected to be finalized and implemented toward end-2004 and contribute from FY06.

• Veterinary vaccines were planned for development in FY06, leveraging established veterinary products and customer base.