Orchid Chemicals and Pharmaceuticals, a Rs.1,200 crore plus Chennai based pharma giant, has suffered heavy setback during the fourth quarter ended in March 2013 on account of heavy interest burden and lower sales. Its net loss for the fourth quarter ended March 2013 touched to Rs.132.27 crore as against a net profit of Rs.20.55 crore. Its EBDITA also declined by over 84 per cent to Rs.13.97 crore from Rs.89.51 crore. Orchid's net sales declined sharply by 40.7 per cent to Rs.268.16 crore from Rs.451.92 crore. Earnings per share worked out to negative Rs.18.77 as against positive Rs.2.92 in the last period. The company decided to extent its financial year by three months to June 30, 2013.
Interest burden increased by 45.9 per cent to Rs.85.76 crore from Rs.58.79 crore. The company is in the process of negotiation with Banks, Financial institutions and other for settlement of dues. The amount of penal interest and other charges payable would be determined on completion of the negotiations. Orchid scrip is moving close to its 52-weeks lowest level at Rs.63 on BSE as against its 52-weeks high level of Rs.131.85 in July 2012.
The company's net loss for the full year ended March 2013 mounted to Rs.275.37 crore as against a net profit of Rs.103.11 crore in the previous year. Its net sales declined by 27.8 per cent to Rs.1,228 crore from Rs.1,702 crore. EBDITA also moved down by 67.8 per cent to Rs.132.59 crore from Rs.411.73 crore.
The company incurred a loss of Rs.27.19 crore from FCCBs during 2012-13 as against Rs.61.26 crore. It received an amount of Rs.53.34 crore from profit on sale of investments in the joint venture in China during the 2012-13 as against nil in the previous year. It also received amount of Rs.22.63 crore for closure of Alathur plant in the previous year. The amount remaining to be amortized in the financial statements as at march 31, 2013 on account of exercising the the option provided under the Amendment to the Companies (Accounting Standards) Amendments Rules, 2006 is Rs.74.14 crore as compared to Rs.48.24 crore in the last year.
The transaction with Hospira Healthcare (India) Pvt Ltd, relating to the sale and transfer of Orchid's Penicillin and Penem API business and the API facility located at Aurangabad together with associated process R&D infrastructure located in Chennai is expected to be completed by June 30, 2013.