Balaxi Pharmaceuticals (BALAXI) Q4 16/17 earnings summary

Executive summary

• FY17 ended with a net loss after a steep loss on share-trading operations; a change of control followed in May 2017, with new owners planning to expand into pharmaceuticals and builders hardware.

• The business had operated as an investment company since selling its plantations in 1989; funds remained in banks and investments pending new business proposals.

Financial highlights

• Total revenue was a loss of Rs 61,251.07 hundred in FY17 versus income of Rs 4,913.32 hundred in FY16; FY17 included negative share-trading income of Rs 61,445.81 hundred.

• Loss before tax was Rs 78,955.27 hundred versus Rs 11,631.36 hundred; net loss was Rs 78,955.27 hundred versus Rs 8,037.27 hundred.

• Finance costs declined to Rs 4,119.40 hundred from Rs 4,631.31 hundred; employee expenses rose to Rs 6,500 hundred from Rs 5,617 hundred.

• Operating cash use was Rs 99,124.81 hundred; investing activities generated Rs 328,990.62 hundred, mainly from investment sales.

Outlook and guidance

• Management expected investment-sector growth alongside India’s economic expansion and the Make in India campaign, and was assessing new investment opportunities.

• Following the August 2017 amendment of the main objects, management was considering pharmaceutical and hardware trading and manufacturing, supported by the holding group’s market reach and product range.