Orchid Pharma net loss narrows to Rs 53.9 crore

Firm had posted a net loss of Rs 72.35 cr in year-ago quarter

Orchid Chemicals & Pharmaceuticals Ltd (OCPL) has posted a net loss of Rs 53.90 crore for the quarter ended December 31, 2013, as against a net loss of Rs 72.35 crore for the same period of previous fiscal year. The total operating income stood at Rs 371.60 crore for the quarter, with an increase of 18.5 per cent compared to Rs 313.53 crore for the same period of previous financial year.

"Though the company continues to face tight working capital situation, the approvalfor the Corporate Debt Restructuring Package (CDR), expected before end of February 2014 would facilitate completion of Penicillin and Carbapenem Business transfer to Hospira and also bring in working capital availability from deal proceeds besides de-leveraging debt profile," said R Raghavendra Rao, Chairman and managing director, OCPL.

He said that with this the company would be on a better platform to improve performance. The company said that due to financial constraints, it was not able to take delivery of the materials in due course. The company's deal with Hospira Healthcare to sell its facility in Aurangabad and some of the facilities in Chennai, for $200 million is also pending.