Zydus Wellness (531335) Q4 04/05 earnings summary

Executive summary

• FY2004-05 sales and other income reached Rs 2,956.79 lakh, up 60.75% YoY; net profit rose 34.96% to Rs 248.63 lakh.

• Growth accompanied expansion across margarine, butter and processed cheese, with plans to double margarine capacity by October 2005.

Financial highlights

• Sales and other income were Rs 2,956.79 lakh vs Rs 1,839.38 lakh; reported growth was 60.75% YoY.

• Profit before tax was Rs 393.22 lakh vs Rs 257.51 lakh; profit after tax was Rs 248.63 lakh vs Rs 184.23 lakh.

• Total expenditure rose 62.05% to Rs 2,563.56 lakh from Rs 1,581.87 lakh.

• Proposed dividend was Re 1 per Rs 10 equity share; total outlay including dividend tax was Rs 46.61 lakh.

Outlook and guidance

• Margarine capacity was planned to rise from 350 MT/month to ~700 MT/month by October 2005.

• Market expansion was planned in Madhya Pradesh, West Bengal and the North-East, building on nationwide margarine reach.

• Continued focus on healthier food analogues was supported by rising health awareness and demand for substitutes.