Balaxi Pharmaceuticals (BALAXI) Q4 13/14 earnings summary

Executive summary

• FY14 net profit rose to Rs1,095,288 from Rs442,132 in FY13; proposed a 10% dividend, absorbing Rs700,000 plus Rs118,965 in dividend tax.

• Funds remained deployed in bank deposits and share investments after the plantation sale in 1989, while directors considered proposals to strengthen the financial base.

Financial highlights

• Gross income was Rs1,929,172.78 vs Rs861,335.44 YoY; profit before tax was Rs1,489,288.29 vs Rs585,132.41, and profit after tax was Rs1,095,288.29 vs Rs442,132.41.

• Total revenue was Rs19,291.73 hundreds vs Rs8,613.35 hundreds; total expenses were Rs4,398.84 hundreds vs Rs2,762.03 hundreds.

• Excess income-tax provision written back, a non-recurring item, was Rs59,480.41.

• Operating cash flow was negative Rs23,941.17 hundreds vs positive Rs32,450.75 hundreds; investing activities provided Rs32,857.35 hundreds, and financing used Rs7,322.02 hundreds.

Outlook and guidance

• Proposed a preferential issue of 2.5m shares at Rs10.50 each, subject to shareholder and regulatory approvals, to raise up to Rs26.25m for working capital and general corporate purposes.

• Directors said the capital raise would strengthen the financial base and support a move from the Madras Stock Exchange to BSE or NSE to continue listed status.

• Business proposals under consideration included acquiring another plantation and/or commencing tea, rubber or another business.