Zydus Lifesciences (ZYDUSLIFE) Q4 06/07 earnings summary

Executive summary

• FY06-07 sales reached the stated $400m milestone; the next target is sales above $1bn by 2010.

• Consolidated operating income rose 23% YoY to Rs. 18,288m, while net profit increased 54% to Rs. 2,338m.

Financial highlights

• Consolidated gross sales increased 24% to Rs. 18,747m; export sales rose 63% to Rs. 6,052m, led by formulations exports.

• Consolidated EBITDA rose 22% to Rs. 3,521m; PAT increased 53% to Rs. 2,338m, and EPS rose to Rs. 18.62 from Rs. 12.13.

• Standalone sales and other income reached Rs. 15,141m; PAT rose 24% to Rs. 2,047m, with EPS of Rs. 16.30.

Outlook and guidance

• Target sales above $1bn by 2010 and $3bn by 2015; aspiration is to become a research-based pharmaceutical business by 2020.

• French operations targeted break-even in FY07-08, supported by India site transfers, new product filings and planned launches of over 20 presentations.

• Brazil plans called for 6–8 product launches annually over the next 3–5 years; Japan plans included a 15–20-product basket over five years.