Orchid Chemical and Pharmaceuticals has posted a net loss of Rs 11.06 crore during the third quarter ended December 2011 as against a net profit of Rs.56.62 crore mainly on account of forex loss and one time expenditure of Alathur plant closer of Rs.49.07 crore as against a forex gain of Rs.3.66 crore in the last period. Its EBDITA declined by 1.7 per cent to Rs.129.03 crore from Rs.131.29 crore. The company's net sales increased marginally by 4.3 per cent to Rs.482.10 crore from Rs.462.46 crore. With lower profits, Orchid scrip declined sharply today by Rs.17.75 to Rs.172 on BSE.

K Raghavendra Rao, chairman and managing director, said, “The operational performance of the company continues to register strong growth. Higher interest charges due to the hardening of interest rates coupled with the exchange loss on outstanding foreign currency loans have impacted the bottom line in the third quarter. The exceptional item loss is a point-in-time restatement and with the rupee strengthening the company will have a write-back on this account.”

Its global API business continued to witness strong growth backed by the long-term supply arrangements with key, large global majors. Its API sales grew to Rs.353 crore from Rs.330 crore in the similar period of last year. Its formulation division achieved sales of Rs.114 crore as compared to Rs.90 crore in the last period.

For the first nine months ended December 2011, Orchid's net sales increased by 13.9 per cent to Rs.1354 crore from Rs.1189 crore in the same period of last year. Its net profit, however, declined by 15.6 per cent to Rs.82.25 crore from Rs.97.48 crore. The net profit, before extraordinary item of Rs.80 crore, worked out to Rs.2.25 crore as compared to Rs.97.48 crore. The extra ordinary items of Rs.80 crore represents write back of certain provisions made for rebates and discounts as the amounts have been fully realised during the nine months ended December 2011.