Zydus Wellness (531335) Q4 01/02 earnings summary

Executive summary

• FY02 sales and other income were Rs 6,41,61,033; net profit after tax was Rs 49,44,247, compared with Rs 47,69,124 in FY01.

• Targeted sales were achieved despite sluggish economic and adverse market conditions; test production, surveys and other exceptional costs limited the profit improvement.

Financial highlights

• Sales and other income rose to Rs 6,41,61,033 from Rs 5,69,23,033; profit before interest, depreciation and tax was Rs 99,58,208 versus Rs 91,15,410.

• Profit before tax was Rs 54,54,247, compared with Rs 49,19,124; profit after tax was Rs 49,44,247 versus Rs 47,69,124.

• Raw material costs were Rs 2,13,11,861, up from Rs 1,77,80,891; other expenses were Rs 1,75,65,474 versus Rs 1,32,13,039.

Outlook and guidance

• New products tested during FY02, along with products in development, are expected to support growth in coming years; launch plans target sizeable domestic markets.

• Planned higher advertising and promotion, focus on profitable brands and tighter overhead control are expected to improve performance and profitability.