Oxygenta Pharmaceutical (524636) Q4 12/13 earnings summary

Executive summary

• FY13 remained loss-making with operations largely suspended; reported net loss rose to ₹1,669.63 lakh from ₹235.95 lakh in FY12.

• Management cited the prior forcible takeover and ensuing litigation; after regaining possession in May 2012, it refurbished the plant and targeted production commencement in July 2013.

Financial highlights

• Total revenue was ₹13,807 in FY13 versus ₹2,500 in FY12; there was no revenue from operations.

• Total expenses were ₹145.29 lakh, led by employee benefits of ₹76.63 lakh and other expenses of ₹68.42 lakh.

• Loss before prior-period items was ₹145.15 lakh; a ₹21.81 lakh prior-period adjustment resulted in a ₹166.96 lakh loss before tax and net loss.

• Operating cash outflow was ₹61.03 lakh; investing outflow was ₹256.80 lakh, financed primarily by ₹376.90 lakh of long-term and other borrowings.

Outlook and guidance

• Contract manufacturing arrangements with leading pharmaceutical companies were planned, with production targeted for July 2013 and operations expected to stabilize by FY-end.

• A further ~₹2 crore was expected to complete revival; management anticipated improved performance if operations proceeded without disruption or litigation.