Zydus Lifesciences (ZYDUSLIFE) Q4 98/99 earnings summary

Executive summary

• Sales rose 18.26% YoY to Rs 36,144.20 lakh; profit before tax increased to Rs 3,625.21 lakh from Rs 2,045.07 lakh.

• Growth initiatives included new product launches, expanded manufacturing capacity, R&D investment and global healthcare partnerships.

Financial highlights

• Total income was Rs 36,257.66 lakh in FY99 versus Rs 30,709.31 lakh in FY98; sales were Rs 36,144.20 lakh versus Rs 30,560.51 lakh.

• Profit before depreciation, interest and tax was Rs 4,592.73 lakh versus Rs 3,776.04 lakh; depreciation was Rs 440.55 lakh and interest and financial charges were Rs 526.97 lakh.

• Profit after tax was Rs 3,125.21 lakh before prior-year tax adjustment of Rs 89.26 lakh; reported net profit after adjustment was Rs 3,035.95 lakh, versus Rs 2,047.00 lakh in FY98.

Outlook and guidance

• Management expected growth to accelerate, supported by new products, customer-focus initiatives and expanded capacities.

• Moraiya R&D centre was expected to be completed by Dec 1999; Losartan bulk-drug production at Ankleshwar and the Vatwa feed-supplement project were targeted to start by Jul 1999.

• R&D priorities included pilot studies for r-DNA therapeutic protein, immunogenic gene cloning, drug discovery, IPR and commercial launches of new healthcare products.