Balaxi Pharmaceuticals (BALAXI) Q4 17/18 earnings summary

Executive summary

• FY18 remained a low-activity investment period, with the planned wholesale pharmaceuticals and hardware business not yet launched; net loss widened to ₹76,989 hundreds from ₹17,420 hundreds in FY17.

• Control changed in May 2017: Balaxi Overseas Private Limited became the holding promoter with 65.79% ownership; the business objects, name and registered office were also changed.

Financial highlights

• Total income was ₹39 hundreds in FY18 versus ₹283 hundreds in FY17; total expenses rose to ₹77,028 hundreds from ₹17,703 hundreds.

• FY18 expenses included employee benefits of ₹15,000 hundreds, finance costs of ₹4,119 hundreds, depreciation of ₹199 hundreds and other expenses of ₹61,829 hundreds.

• Basic and diluted EPS were both a loss of ₹2.53 in FY18, compared with a loss of ₹0.57 in FY17.

• Cash and bank balances were ₹164,602 hundreds at March 31, 2018, versus ₹233,605 hundreds a year earlier; total assets were ₹168,666 hundreds.

Outlook and guidance

• Wholesale pharmaceuticals and hardware trading was approved as a new business direction, intended to improve fund utilization and restore profitability, but had not commenced by the report date.

• A preferential issue of 20 million shares at ₹15 per share, targeting ₹30 crore, received shareholder approval on April 20, 2018; after proposed subscribers withdrew, the Board withdrew the issue.