Orchid Chemicals & Pharmaceuticals, a Rs 1,200 crore plus pharma major from Chennai, has suffered a setback during the year ended March 2009 on account of foreign exchange and MTM losses, and significant higher interest burden. The company incurred a net loss of Rs 49 crore as against a net profit of Rs 175.34 crore in the previous year. The board has recommended equity dividend of 10 per cent for the year 2008-09.
The company's sales improved only by 0.5 per cent to Rs 1,260 crore from Rs 1,253 crore in the previous year. Its other operating income increased to Rs 55.53 crore from Rs 47.60 crore.
The employees cost touched to Rs 136.85 crore from Rs 117.14 crore and its interest cost went up sharply by 90.8 per cent to Rs 156.45 crore from Rs 82 crore in the previous year. Further, depreciation provision also increased to Rs 133.99 crore from Rs 11.68 crore.
The company provided Rs 40.43 crore for exceptional loss as against a gain of Rs 71.27 crore in the last period. This exceptional loss represents exchange losses on FCCBs of Rs 28.39 crore (previous year gain of Rs 71.27 crore), one time charge for rebates and discounts of Rs 40 crore (nil in the last period), and MTM losses on derivative instruments provided of Rs 39.34 crore (nil), aggregating of the three netted off against profit on cancellation of FCCBs of Rs 67.31 crore (nil in the previous year).