Oxygenta Pharmaceutical (524636) Q4 11/12 earnings summary

Executive summary

• FY12 operations remained at a standstill following a prolonged management dispute and factory closure; reported net loss widened to Rs. 23.59 lakh from Rs. 15.05 lakh in FY11.

• Management regained possession on 16 May 2012, began restoring the damaged plant and equipment, and pursued revival while addressing regulatory, legal and financial issues.

Financial highlights

• FY12 total revenue was Rs. 2,500, comprising other income; total expenses were Rs. 23.62 lakh and loss before tax and net loss were Rs. 23.59 lakh.

• FY11 net loss was Rs. 15.05 lakh; FY12 employee benefit expense was Rs. 12.15 lakh and other expenses were Rs. 11.47 lakh.

• Total assets were Rs. 13.63 crore at 31 March 2012; fixed assets were Rs. 12.32 crore, long-term borrowings Rs. 4.34 crore and trade payables Rs. 8.61 crore.

Outlook and guidance

• Management planned contract manufacturing and expressed confidence in resolving outstanding issues and improving performance.

• A draft BIFR revival scheme proposed promoter funding of up to Rs. 4 crore, with the next hearing scheduled for 11 April 2013.

• Management cited potential to pursue pharmaceutical industry opportunities if operations could proceed without hindrance or litigation.