Orchid Pharma net loss widens on tight working capital, debt leverage pressure

Net loss at Rs 74.7 crore for Q3 FY13 vs Rs 11.06

Orchid Chemicals & Pharmaceuticals Ltd has posted a Rs 74.7 crore net loss for the quarter ended December 31, 2012, as against Rs 11.06 crore for the same period of the previous fiscal, on a consolidated basis, owing to the tight working capital levels and debt leverage.

“The overall performance of the company continues to witness pressure due to the tight working capital levels and debt leverage," said K Raghavendra Rao, chairman and managing director, Orchid Chemicals & Pharmaceuticals Ltd.

"We are working on completing the transfer of our Penicillin and Carbapenem business to Hospira and will see a significantly deleveraged position from the deal proceeds leading to improved performance in the quarters to come,” he added.

The total income of the company saw a drop of 35% at Rs 322 crore for the third quarter ended December 31, 2012, compared to Rs 496.8 crore registered during the corresponding period of last year.