ORCHID PHARMA

The company’s loss only went on to widen at Rs.166 crore v/s loss of Rs.47 crore loss in previous Q1. This was on a 28% (YoY) decrease in net sales at Rs.182 crore and things got only worse when total costs exceeded topline at Rs.203 crore.  The company said that topline fell due to product mix and capacity utilization.

The company also had an exceptional loss of Rs.86 crore which is what went to widen the net loss. This includes forex loss of Rs.10 crore and write-off of hold back and inventory related to transfer of Penam and penicillin business during July 2014.

It’s a pity that this company, which at one-time was hailed as one of the best Indian pharma companies in the making, a darling of the investors is today mired in such losses.  The management as usual is hopeful and states that the proposed launch of new products during the current financial year will improve volumes and profitability in the ensuing quarter.