Balaxi Pharmaceuticals (BALAXI) Q4 15/16 earnings summary

Executive summary

• FY2015-16 shifted to a net loss as total revenue fell to Rs 4,913.32 hundred from Rs 24,122.80 hundred; investment activity remained the entire reported business mix.

• Surplus funds remained deployed in investments following the 1989 sale of loss-making plantations; management was exploring new investments and a possible return to plantation or agricultural operations.

Financial highlights

• Total revenue was Rs 4,913.32 hundred in FY2015-16 versus Rs 24,122.80 hundred in FY2014-15; operating revenue from share trading was Rs 4,751.12 hundred versus Rs 12,374.47 hundred.

• Loss before tax was Rs 11,631.36 hundred, versus profit before tax of Rs 14,714.64 hundred; loss after tax was Rs 8,037.27 hundred, versus profit after tax of Rs 10,235.44 hundred.

• Employee expenses rose to Rs 5,617.00 hundred from Rs 2,450.00 hundred; finance costs increased to Rs 4,631.31 hundred from Rs 1,370.11 hundred.

• Other income fell to Rs 162.20 hundred from Rs 11,748.33 hundred, reflecting prior-year mutual fund income and bank interest.

Outlook and guidance

• Management was evaluating potential investment avenues, seeking to expand the capital base, and considering a return to plantation or agricultural activities; no quantified financial guidance was stated.

• Management expected investment-sector growth to benefit future investment opportunities, citing India's economic growth and the Make in India campaign.