Orchid Chemicals and Pharmaceuticals has suffered another setback during the fourth quarter ended March 2015 and its net loss went up by over 83 per cent to Rs.148.05 crore from Rs.80.79 crore in the corresponding period of last year due to lower sales. EBIDTA also declined to Rs.87.02 crore from Rs.108.42 crore. Its net sales declined sharply by 36.9 per cent to Rs.283 crore from Rs.448 crore. With huge net loss, its EPS worked out to negative Rs.17.36 as compared to negative Rs.11.47 in the last period.
Its exceptional loss amounted to Rs.101 crore during the quarter under review mainly due to exchange loss on restatement of foreign currency loans amounting to Rs.10.93 crore, provision for contingencies relating to transferred business amounting to Rs.60 crore and one time management fee paid amounting to Rs.30 crore. Further, it incurred an extra-ordinary loss of Rs.48 crore which represents additional tax impact on sale of undertaking during the fourth quarter. Its interest cost increased slightly to Rs.104.52 crore from Rs.102.02 crore. The company has wound up its wholly owned subsidiary Orchid Singapore Pte Ltd in Singapore.
For the 18 periods ended March 2015, Orchid's consolidated net sales declined by 9.5 per cent to Rs.1,714 from Rs.1,893 crore in the previous year of 18 months period. With extra ordinary income of Rs.270.62 crore, its net loss for the 18 months period declined to Rs.196.65 crore from Rs.558.03 crore in the previous year. EPS for the 18 months period worked out to negative Rs.26.88 as compared to Rs.79.21 in the last period. Exceptional loss amounted to Rs.157.26 crore as against net gain of Rs.51.11 crore.
The company was admitted by CDR cell for restructuring its loans and the CDR package was approved by the CDR in March 2014. The business transfer agreement entered into with Hospira a part of the CDR initiative was implemented in July 2014 in line with the CDR process.
K Raghavendra Rao, managing director, said, “The approval of the CDR package and its implementation during the year wit the support of the lendeRs.and financial institutions has helped us put operations of the remaining business back on track. The allocation of part of the sales proceeds for working capital requirements, reduced interest rates on the loans with moratorium of 2 years for repayment of the principal and interest has improved the level of operations. Given our quality standards and new product pipeline, we are confident of better performance going forward.”
As against equity capital of Rs.85.26 crore, Orchid's reserves and surplus stood at Rs.244.12 crore as compared to Rs.309.53 crore in the previous year. Long term borrowings went up sharply to Rs.2,478 crore from Rs.902 crore. However, its short term borrowings declined to Rs.581 crore from Rs.1,525 crore.