Viyash Scientific (512529) Q4 04/05 earnings summary

Executive summary

• FY05 operating income was Rs 2,546.93 lacs versus Rs 1,988.06 lacs in FY04; net profit after depreciation and tax was Rs 307.04 lacs versus Rs 295.51 lacs.

• Bulk drugs and specialized veterinary formulations remained the core business; expansion plans targeted higher production and profitability.

Financial highlights

• Gross profit before depreciation and tax rose to Rs 520.79 lacs from Rs 437.00 lacs; profit before tax was Rs 474.48 lacs versus Rs 409.03 lacs.

• Other income was Rs 52.63 lacs versus Rs 31.56 lacs; export sales totaled Rs 8.13 crore.

• Operating cash flow was Rs 429.05 lacs; cash and cash equivalents ended FY05 at Rs 284.79 lacs.

Outlook and guidance

• Capacity debottlenecking and expansion were expected to lift production and profitability by 60–70%; required funding was estimated at Rs 24 crore, potentially via preferential issue or another suitable route.

• Liquid oral facilities were finalized and machinery ordered; commissioning and production were expected during FY06.

• The Kumta R&D plant had commenced operations; plans included expanding the API range and entering international API markets.