Oxygenta Pharmaceutical (524636) Q4 16/17 earnings summary

Executive summary

• FY 2016-17 gross income fell to ₹8.77 crore from ₹12.43 crore; net loss widened to ₹5.81 crore from ₹5.50 crore. Operations remained constrained by working-capital shortages.

• Management continued efforts to improve performance and expressed confidence in future growth, while noting that operations were not yet stabilized.

Financial highlights

• Revenue from operations was ₹8.15 crore versus ₹12.43 crore in FY 2015-16; other income was ₹61.78 lakh, including ₹60.82 lakh of insurance claims received.

• Total expenses were ₹14.50 crore versus ₹17.93 crore; loss before tax was ₹5.72 crore versus ₹5.50 crore.

• Net loss was ₹5.81 crore versus ₹5.50 crore; no dividend was recommended for FY 2016-17.

Outlook and guidance

• Management expected performance to improve in the following year; operations were below full capacity due to working-capital constraints.

• Contract manufacturing was expected to continue until working-capital limits from a bank could be secured, supporting major operating expenses and income consistency.