The company is now a part of CDR cell and has executed a master restructuring agreement with its lenders except State Bank of Travancore (SBT). This bank sold off its share of loan and securities to Edelweiss Asset Reconstruction Company (EARC), which during Q4Fy16 restructured entire outstanding of Rs.165 crore for an aggregate principal amount of Rs.115 crore.

Thanks to this, Panacea got an exceptional income of Rs.50 crore. The company has repaid principal of Rs.3 crore and balance of Rs.112 crore is to be repaid in 29 instalments every quarter, starting from Q4FY16 and ending in Q4FY23. This exceptional income of Rs.50 crore, a 27% (YoY) drop in costs and a 14% increase in net sales at Rs.187 crore helped the company end Q4FY16 with a net profit of Rs.72 crore v/s loss of Rs.31 crore in previous Q4 and loss of Rs.17 crore in Q3. It is vaccines which helped boost the performance – its EBIT rose 11&5 while that of formulations was down 46%. R&D was a curious case – its revenue rose 15 times but it ended with a loss at EBIT level of Rs.4 crore v/s loss of Rs.19 crore (YoY).

The fiscal performance though was not good to the extent that it remained in the red though losses came down drastically. The company ended FY16 with a 4% drop in net sale at Rs.626 crore and net loss came down to Rs.18 crore v/s loss of Rs.106 crore in FY15.