Viyash Scientific (512529) Q4 07/08 earnings summary

Executive summary

• Consolidated sales and operating income rose to ₹74.80 crore from ₹44.72 crore, while profit after tax fell to ₹2.52 crore from ₹8.58 crore; the prior year included a ₹3.52 crore extraordinary gain. Current-year results also include the Transchem Pharma Division acquisition from 1 September 2007.

• Anthelmintic APIs remained the core business, contributing 92% of consolidated sales; formulation products and development of additional APIs were identified as growth opportunities.

Financial highlights

• Consolidated sales and operating income: ₹74.80 crore vs ₹44.72 crore; profit before tax: ₹3.71 crore vs ₹11.14 crore; current-year and prior-year figures are not directly comparable after the acquisition.

• Consolidated PAT was ₹2.52 crore vs ₹8.58 crore reported; excluding the prior-year ₹3.52 crore extraordinary item, prior-year PAT was ₹5.05 crore.

• Standalone turnover was ₹67.79 crore, including export sales of ₹28.46 crore; standalone PBT was ₹2.74 crore and PAT ₹2.03 crore.

• Consolidated finance cost increased to ₹1.87 crore from ₹0.30 crore, and depreciation to ₹3.00 crore from ₹1.38 crore.

Outlook and guidance

• Management planned to increase sales volumes to support profitability amid adverse currency movements and input-cost inflation, and to improve manufacturing efficiency and productivity.

• Formulations were identified as a major diversification opportunity; six APIs were in advanced development and two in pilot-plant scale-up, with plans to develop higher-cost, optically pure APIs.

• DMFs had been filed for five existing products, with further filings and strengthened regulatory capabilities intended to expand presence in developed markets.