Viyash Scientific (512529) Q4 06/07 earnings summary

Executive summary

• FY07 sales rose 23% YoY to Rs 3,697.11 lakh; reported PAT was Rs 767.04 lakh, including Rs 282.94 lakh gain on sale of shares. Excluding the exceptional item, PAT rose 32% to Rs 484.10 lakh.

• Acquired Elixir Chemicals in Sep 2006, making it a wholly owned subsidiary; a change in promoters and management followed an open offer completed in Apr 2007.

Financial highlights

• Revenue Rs 3,697.11 lakh vs Rs 3,003.71 lakh; PBDIT Rs 1,043.33 lakh vs Rs 598.74 lakh; PBT Rs 906.77 lakh vs Rs 541.69 lakh.

• Excluding the exceptional item, PBT increased 17% to Rs 623.84 lakh from Rs 533.42 lakh; PAT increased 32% to Rs 484.10 lakh from Rs 366.95 lakh.

• Reported PAT was Rs 767.04 lakh vs Rs 375.22 lakh; EPS was Rs 7.26 vs Rs 5.65 on the stated EPS basis.

• Exports, including deemed exports, were Rs 1,044 lakh vs Rs 1,188 lakh.

Outlook and guidance

• Four APIs were at advanced synthesis stage, with some expected to be commercialized in FY08; new products and intermediates were expected to support graded revenue growth over 2–3 years.

• Priorities include veterinary and anthelmintic APIs, human API diversification, R&D and quality, regulatory upgrades, and entry into US and European regulated markets.

• A multinational supply tie-up for an animal-health product was expected to generate sizable volumes in coming years; discussions with other international pharma companies were ongoing.