Balaxi Pharmaceuticals (BALAXI) Q4 12/13 earnings summary

Executive summary

• FY2012-13 net profit was ₹4,421.32 hundred, down from ₹11,931.44 hundred YoY; proposed dividend was 9%, absorbing ₹630,000 plus dividend tax.

• Funds remained deployed in banks and investments while directors considered proposals to strengthen the financial base and restart or acquire operating businesses.

Financial highlights

• Total revenue was ₹8,613.35 hundred vs ₹19,095.37 hundred in FY2011-12; operating revenue from share trading rose to ₹6,629.16 hundred from ₹6,240.13 hundred.

• Other income declined to ₹1,984.19 hundred from ₹12,855.24 hundred, including an investment-sale loss of ₹3,658.31 hundred.

• Profit before tax was ₹5,851.32 hundred vs ₹14,103.74 hundred; profit after tax was ₹4,421.32 hundred vs ₹11,931.44 hundred.

• Total expenses were ₹2,762.03 hundred vs ₹4,991.63 hundred; finance cost increased to ₹242.96 hundred from ₹164.68 hundred.

Outlook and guidance

• Proposed rights issue to raise additional equity and strengthen the financial base; the issue ratio, price and terms were to be set by the Board.

• Plans under consideration included acquiring another plantation and/or starting tea, rubber or another business.

• Shareholders were asked to approve increasing authorized share capital from ₹2 crore to ₹4 crore to support future equity funding.