Viyash Scientific (512529) Q4 05/06 earnings summary

Executive summary

• FY06 revenue from operations rose to Rs 3234.79 lakh from Rs 2546.93 lakh; profit after tax increased to Rs 375.22 lakh from Rs 307.04 lakh.

• Expansion centered on animal-health APIs and granules, with a liquid line commissioned and Kumta R&D and validation capabilities being developed.

• Earnings were retained; no dividend was recommended.

Financial highlights

• Revenue from operations: Rs 3234.79 lakh vs Rs 2546.93 lakh; other income: Rs 64.97 lakh vs Rs 52.63 lakh, FY06 vs FY05.

• Profit before tax: Rs 541.69 lakh vs Rs 474.48 lakh; profit after depreciation and tax: Rs 375.22 lakh vs Rs 307.04 lakh.

• EPS: Rs 5.77 vs Rs 4.72; FY06 profit after tax was Rs 375.22 lakh, compared with Rs 307.04 lakh in FY05.

• Export earnings, including freight and commission, reached Rs 1062.99 lakh vs Rs 779.36 lakh; MD&A cited exports of Rs 11.70 crore.

Outlook and guidance

• Growth priorities include the anthelmintic market, niche and value-added products, and generic molecules emerging after patent expiry.

• Kumta R&D was expected to develop into a standalone profit center offering contract research and broader laboratory services.

• Shareholder approval was sought for borrowing up to Rs 100 crore at any one time to support expansion and working capital needs.

• An enabling resolution proposed raising up to US$20 million or equivalent through equity-linked securities for expansion and other corporate purposes.