Oxygenta Pharmaceutical (524636) Q4 09/10 earnings summary

Executive summary

• FY10 operations remained at a standstill following the management dispute and factory closure; the reported net loss was Rs 15.55 lakh, versus Rs 20.70 lakh in FY09.

• Management regained possession on 16 May 2012, reported spending over Rs 300 lakh to restore equipment, and planned contract manufacturing as part of a revival effort.

Financial highlights

• FY10 loss before tax was Rs 15.55 lakh, versus Rs 20.65 lakh in FY09; loss after tax was Rs 15.55 lakh, versus Rs 20.70 lakh.

• FY10 employee costs were Rs 11.02 lakh and administrative and selling expenses were Rs 4.54 lakh, compared with Rs 12.28 lakh and Rs 8.38 lakh in FY09.

• Accumulated losses reached Rs 1,313.49 lakh at 31 March 2010, compared with Rs 1,297.94 lakh a year earlier.

Outlook and guidance

• Management expressed confidence in resolving outstanding issues and improving performance, with contract manufacturing under consideration.

• A draft revival scheme proposed promoter/management funding of up to Rs 4 crore; a BIFR hearing was scheduled for 11 April 2013.

• Management cited opportunities in a buoyant domestic and international pharmaceutical industry, conditional on operations proceeding without disruption or litigation.