Zydus Wellness (531335) Q4 97/98 earnings summary

Executive summary

• FY98 sales rose to Rs. 4,85,083 from Rs. 2,18,400; the year ended with a net loss of Rs. 78,83,943.

• A Gujarat marketing channel was established, while a nationwide distribution network was being developed; working-capital facilities sanctioned late in the year eased liquidity pressure.

Financial highlights

• Sales were Rs. 4,85,083 versus Rs. 2,18,400 in FY97; total income was Rs. 21,57,763, including Rs. 16,37,984 interest income.

• Total expenditure was Rs. 1,00,41,706 and net loss was Rs. 78,83,943, versus prior-year profit after tax of Rs. 4,08,208.

• Closing inventory increased to Rs. 22,71,562 from Rs. 40,000; cash and bank balances fell to Rs. 83,479 from Rs. 13,37,993.

Outlook and guidance

• Nationwide distribution was targeted for establishment in the near term, building on the Gujarat marketing channel launched during FY98.