Zydus Lifesciences (ZYDUSLIFE) Q4 03/04 earnings summary

Executive summary

• FY03/04 sales reached Rs 11,723 mn, up 14% YoY; net profit rose 86.5% to Rs 1,429 mn as exports and operating margins strengthened.

• Strategy shifted toward regulated global generics while consolidating domestic operations; exports grew 62.3% and reached 16.1% of sales.

Financial highlights

• PBIDT increased 29.4% to Rs 2,488 mn; margin rose to 21.2% from 18.7%.

• PBT rose 55.2% to Rs 1,634 mn; PAT reached Rs 1,429 mn versus Rs 766 mn; EPS increased to Rs 22.75 from Rs 12.20.

• Consolidated sales rose 18.2% to Rs 13.34 bn; consolidated PBIDT grew 18.5% to Rs 2,594 mn and net profit increased 37.9% to Rs 1,331 mn.

Outlook and guidance

• Long-term targets: sales of $400 mn by 2006; top-ten global generics ranking and sales above $1 bn by 2010; research-driven global pharma presence by 2020.

• US plans included a basket of ~100 formulation products and 12 ANDA filings in FY03/04; generics launches in France were planned for 2004, with Italy and Spain targeted within two years.

• Baddi formulations facility was expected to start in H2 FY04/05; Banyan capacity expansion and custom-synthesis facilities were also planned to come on stream in FY04/05.