Zydus Wellness (531335) Q4 02/03 earnings summary

Executive summary

• Sales and other income rose 42% YoY to Rs. 9.13 crore; the year ended with profit after tax of Rs. 93.58 lakh versus Rs. 46.61 lakh.

• After covering the prior-year accumulated deficit and proposed dividend, Rs. 21.89 lakh was carried forward as surplus.

Financial highlights

• Sales were Rs. 8.86 crore versus Rs. 6.21 crore; total income was Rs. 9.13 crore versus Rs. 6.42 crore.

• Profit before tax and exceptional items was Rs. 1.17 crore versus Rs. 54.54 lakh; profit after tax was Rs. 93.58 lakh versus Rs. 46.61 lakh.

• Total expenditure increased to Rs. 7.96 crore from Rs. 5.87 crore; it represented 87% of total income versus 84% in the prior year.

• Net cash from operating activities was Rs. 1.35 crore; cash and bank balances rose to Rs. 2.41 crore from Rs. 1.23 crore.

Outlook and guidance

• Marketing initiatives included improving sales-force effectiveness, rationalizing stockists and strengthening field-selling discipline; these measures reportedly supported operating margins.

• A Jaipur branch opened and sales reached new geographies; management cautioned that forward-looking outcomes could differ due to multiple factors.

• The tentative FY 2003-04 financial calendar scheduled quarterly results for the last weeks of July, October and January, with FY results in the last week of April.