Aurobindo Pharma posts Rs 123 cr loss in Q1

Aurobindo Pharma today posted a consolidated net loss of Rs 122.80 crore for the first quarter ended June 30, 2011 due to redemption of foreign currency convertible bonds (FCCBs) it issued in 2006.

The company had reported a net profit of Rs 51.50 crore for the same period previous fiscal, Aurobindo Pharma said in a statement.

The company's net sales rose to Rs 1,076.87 crore for the first quarter ended June 30, 2011 as compared to Rs 922.25 crore in the same period last financial year.

Outstanding zero coupon FCCBs of $139.2 million have been redeemed and extinguished in entirety during the quarter and redemption Premium, including withholding tax amounting to Rs 319.9 crore paid on redemption of FCCBs resulted in reported loss of Rs 122.8 crores, it said.

Commenting on the results Aurobindo Pharma Chairman Ramprasad Reddy said: "We expect to deliver on better operational performance in the coming quarters. We have successfully redeemed and extinguished the entire FCCBs during the quarter along with redemption premium".

"On the operational side, we have been taking all the steps necessary to address and resolve the regulatory challenges with USFDA around Unit VI Cephalosporin manufacturing facility," Reddy said.

Helix Healthcare BV, Netherlands, a wholly-owned subsidiary of the company during the quarter entered into a shareholders' agreement with Diod Investments Limited, Cyprus ( a Subsidiary of  OJSC DIOD Russia) for establishing a 50:50 Joint Venture Company.

During the quarter, Auro Medics Pharma LLC, USA was incorporated as a step-down subsidiary, while subsidiaries - Aurex Genrics Limited, UK and Aurobindo Pharma (Ireland) Limited, Ireland were dissolved and ceased to be subsidiaries.

The company said it expects its recently commercialised formulations facility Unit VII located in Special Economic Zone in Hyderabad to contribute significantly to the company's growth during the year.

On a standalone basis, the company posted a net loss of Rs 101.58 crore for the June quarter. It had a net profit of Rs 63.34 crore in the same period previous financial year.

As on June 30, 138 ANDAs have been approved in USA, including 29 tentative approvals. During the quarter, the company's six new abbreviated new drug applications (ANDAs) were approved by the USFDA.