Oxygenta Pharmaceutical (524636) Q4 13/14 earnings summary

Executive summary

• Commercial production restarted in Aug 2013 after substantial plant restoration; FY14 remained loss-making, with operations still scaling up.

• More than Rs. 644 lakh was infused over two years for revival, primarily through loans from directors and relatives.

Financial highlights

• FY14 total revenue was Rs. 270.37 lakh, including Rs. 247.01 lakh from job work and Rs. 23.37 lakh of other income.

• FY14 total expenses were Rs. 680.38 lakh; reported loss before tax was Rs. 410.00 lakh and net loss was Rs. 428.83 lakh, versus Rs. 166.96 lakh net loss in FY13.

• FY14 basic and diluted EPS were both a loss of Rs. 4.20, compared with a loss of Rs. 1.63 in FY13.

• Power and fuel expense rose to Rs. 134.83 lakh from Rs. 10.10 lakh in FY13; repair and maintenance and manufacturing expenses also increased during the restart.

Outlook and guidance

• Contract manufacturing was expected to continue until working-capital limits were secured; management said it could cover operating expenses while own production incurred no operating cost.

• Production in Block B was reported as started in Aug 2014, after FY14; efforts were underway to scale production and strengthen revenue and profitability.