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Orchid Chemicals post quarterly loss on forex hit

Orchid Chemicals post quarterly loss on forex hit
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First Published: Tue, Aug 12 2008. 01 29 PM IST
Updated: Tue, Aug 12 2008. 01 29 PM IST
Reuters
Mumbai: Orchid Chemicals & Pharmaceuticals Ltd posted a net loss for the April-June quarter, hurt by notional exchange-related losses on its foreign currency convertibles bonds (FCCBs).
The Chennai-based drug manufacturing company reported a net loss of Rs338.5 million compared with a net profit of Rs485.9 million in the year-ago quarter. However, revenue rose 24% to Rs3.1 billion.
Orchid, in which Ranbaxy Laboratories Ltd bought a near-15% stake through a unit earlier this year, booked a notional loss of Rs588 million on its FCCBs worth about $192 million.
In the year-ago quarter, it booked a gain of Rs528.6 million. The rupee has fallen 6.8% against the dollar in April-June.
During the just-ended quarter, the company’s U.S. business grew steadily on the back of increasing demand for its products that were launched earlier such as cefoxitin and cefdinir, belonging to a class of antibiotics called cephalosporins.
The company also launched granisetron, used to treat chemotherapy-induced vomiting and nausea, in the U.S. during the quarter.
In April, Ranbaxy also formed an alliance with Orchid to make and sell formulations and bulk drugs in various countries.
Orchid shares have fallen over 11% so far this year, underperforming the BSE Healthcare index which are down more than 4%.
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First Published: Tue, Aug 12 2008. 01 29 PM IST