MIRA
INFORM REPORT
|
Report Date : |
08.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
ORCHID CHEMICALS AND PHARMACEUTICALS LIMITED |
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Registered
Office : |
‘Orchid Towers’, 313, Valluvar Kottam High Road, Nungambakkam,
Chennai – 600 034, Tamilnadu |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
01.07.1992 |
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Com. Reg. No.: |
18-022994 |
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Capital
Investment / Paid-up Capital : |
Rs.704.421 Millions |
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CIN No.: [Company Identification
No.] |
L24222TN1992PLC022994 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHEO03079G CHEO00121C |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stok Exchange. |
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Line of Business
: |
Manufacturer and Seller of Pharmaceutical Products and
Bulk Drugs. |
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No. of Employees
: |
4455 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (38) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 47000000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record. Even though there appears some growth in the sales turnover during
2012, there also appears some dip in the profitability of the company. The external borrowing has also increased during this year. It faces high level of regulatory risks associated with the industry. However, trade relations are reported as fair. Business is active.
Payment terms are slow but correct. The company can be considered for business dealings with some caution. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
A4 (Short Term Bank Facilities) |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
June 14, 2012 |
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Rating Agency Name |
CARE |
|
Rating |
B (Long Term Bank Facilities) |
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Rating Explanation |
High risk of default. |
|
Date |
June 14, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
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Registered/ Corporate Office : |
‘ |
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Tel. No.: |
91-44-28251532/ 28251547/ 28284776/ 28211000/ 28230000 |
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Fax No.: |
91-44-28284983/ 28211002 |
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E-Mail : |
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Website : |
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Head Office : |
‘ |
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Factory 1 (API Facilities) : |
Alathur
Works Plot Nos.85-87, 98-100, 126-131, 138-151 and 159-164, SIDCO Industrial
Estate, Alathur, Kancheepuram District – 603110, Tamilnadu, India |
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Tel. No.: |
91-44-27446402/ 403/ 205/ 206/ 320 |
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Fax No.: |
91-44-27446321 |
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Factory 2 (API Facilities) : |
L-8 and L-9, MIDC Industrial Area, Waluj, Aurangabad District – 431136, |
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Tel. No.: |
91-240-2554992/ 993/ 994 |
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Fax No.: |
91-240-2554968 |
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Factory 3 (Formulations) : |
B3 and B4, B11 to B14, B-77 SIDCO Industrial Estate, Alathur,
Kancheepuram Dist. – 603 110, |
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Tel. No.: |
91-44-27156793/ 94 |
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Fax No.: |
91-44-27156816 |
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Factory 4 (Engineering Markets)
: |
Plot Nos. A-10, A-11, SIDCO Industrial Estate, Alathur, Kancheepuram
Dist. – 603 110, |
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Tel. No.: |
91-44-27446909 |
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Fax No.: |
91-44-27446657 |
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Factory 5 : |
Plot Nos. B3-B6, B11 and B14 |
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Factory 6 : |
Vinay Bhavya Complex, No.159A, I Floor, ‘A’ Wing, C S T Road, Kalina, Santacruz,
Mumbai – 400 098, Maharashtra, India |
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R and D Centre 1 : |
Plot No. 476 / 14, |
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Tel No.: |
91-44-24503137/ 1474/ 1477/ 2246 |
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Fax No.: |
91-44-24501396/ 1650 |
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R and D Centre 2 : |
Plot No. B21-B23 and B31-B33, |
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Marketing Office : |
Orchid
Helathcare |
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Tel. No.: |
007495-5141032/ 33 |
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Fax No.: |
007495-5141034 |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. K.
Raghavendra Rao |
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Designation : |
Chairman and
Managing Director |
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Qualification : |
B.Com., PGDM
(IIM-A), ACS, AICWAI |
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Date of Appointment : |
13.07.1992 |
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Name : |
Mr. S. Krishnan |
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Designation : |
Executive Director and Chief Financial Officer |
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Name : |
Mr. K Biju George* |
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Designation : |
Director (IDBI Nominee) |
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Name : |
Mr. Bharat D. Shah |
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Designation : |
Director |
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Name : |
Mr. Deepak Vaidya |
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Designation : |
Director |
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Name : |
Prof. Bala V Balachandran |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Bhoomijha Murali |
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Designation : |
Company Secretary |
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MANAGEMENT TEAM: |
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Name : |
Dr. B. Gopalam |
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Designation : |
Chief Scientific Office |
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Name : |
Ms Edna Braganza |
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Designation : |
Chief Operating Officer - API |
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Name : |
Mr. M S Rangesh |
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Designation : |
Chief Human Resources Officer |
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Name : |
Mr. Vijayendran |
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Designation : |
Chief Executive –
Domestic Formulation |
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Name : |
Mr.
S Mani |
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Designation : |
Head API - Process Research |
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Name : |
Dr.
R Buchi Reddy |
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Designation : |
Senior Vice President – Process Research |
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Name : |
Mr. P N Deshpande |
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Designation : |
Senior Vice President - Manufacturing |
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Name : |
Mr. Shridhar Narayanan |
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Designation : |
Executive Vice President – Biology |
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Name : |
Mr.
S Sridharan |
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Designation : |
Senior Vice President – IT and IE |
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Name : |
Mr. V S Padalkar |
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Designation : |
Vice President - Projects and Maintenance |
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Name : |
Mr.
K V V Raju |
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Designation : |
Vice President - Technical Operations |
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Name : |
Dr. U P Senthil
Kumar |
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Designation : |
Senior Vice President – Process Research |
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Name : |
Dr. Shashank
Narayanrao |
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Designation : |
Senior Vice President – Quality Lulay Assurance (Formulations) |
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Name : |
Dr. C.V Srinivasan |
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Designation : |
Senior Vice President – Medicinal Chemistry |
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Name : |
Dr.
J Surya Kumar |
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Designation : |
Senior Vice President-Formulation Development |
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Name : |
Mr. Deepak M B
Nayyar |
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Designation : |
Vice President - Domestic Formulations |
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Name : |
Mr. Gurmeet Singh |
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Designation : |
Vice President - Commercial |
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Name : |
Mr. V C Nagaraj |
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Designation : |
Vice President - Human Resources |
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Name : |
Mr. Sampath
Parthasarathy |
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Designation : |
Vice President - Domestic Formulations |
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Name : |
Mr.
Srinivasa Rao Prerepa |
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Designation : |
Vice President - RA and QA (API) |
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Name : |
Mr. Suresh Babu |
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Designation : |
Vice President – Corporate Affairs |
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BOARD
OF COMMITTEES : |
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Audit Committee : |
·
Mr. Deepak Vaidya, Chairman · Prof. Bala V Balachandran · Mr. Bharat D Shah · Mr. K Biju George |
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Compensation
Committee: |
· Mr. K Raghavendra Rao, Chairman ·
Mr. Deepak Vaidya, Chairman · Mr. K Biju George |
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Remuneration
Committee: |
·
Mr. Deepak Vaidya, Chairman · Mr. Bharat D Shah · Mr. K Biju George |
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Allotment
Committee: |
· Mr. K Raghavendra Rao, Chairman · Mr. S Krishnan |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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|
(1) Indian |
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|
19194457 |
28.55 |
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|
3646324 |
5.42 |
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|
22840781 |
33.98 |
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|
Total shareholding
of Promoter and Promoter Group (A) |
22840781 |
33.98 |
|
(B) Public
Shareholding |
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|
|
|
|
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|
8000 |
0.01 |
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|
172452 |
0.26 |
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|
3134960 |
4.66 |
|
|
5228146 |
7.78 |
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|
8543558 |
12.71 |
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|
|
|
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|
15978234 |
23.77 |
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|
|
|
|
|
16664800 |
24.79 |
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|
2424168 |
3.61 |
|
|
773847 |
1.15 |
|
|
758547 |
1.13 |
|
|
300 |
0.00 |
|
|
15000 |
0.02 |
|
|
35841049 |
53.31 |
|
Total Public
shareholding (B) |
44384607 |
66.02 |
|
Total (A)+(B) |
67225388 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
3226688 |
0.00 |
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|
3226688 |
0.00 |
|
Total (A)+(B)+(C) |
70452076 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Sellers of Pharmaceutical Products and Bulk Drugs. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Actual Production |
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|
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|
Drugs - Oral and Sterile |
(in MT) |
1025 |
|
Electricity |
(Rs lakhs per
MT) |
5.02 |
|
Furnace Oil |
(Rs lakhs per
MT) |
1.54 |
|
Coal |
(Rs lakhs per
MT) |
0.95 |
|
Others |
-- |
Nil |
|
Particulars |
Unit |
Regd/ Licensed |
Installed |
|
|
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|
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|
Bulk Drugs and
Intermediates |
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Oral and Sterile |
MT |
1.025 |
1.016 |
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|
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|
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Dosage Forms |
|
|
|
|
Vials |
Nos Millions |
-- |
-- |
|
Tablets |
Nos Millions |
1579 |
576 |
|
Capsules |
Nos Millions |
225 |
225 |
|
Dry syrups/Powders |
Nos Millions |
13 |
13 |
GENERAL INFORMATION
|
No. of Employees : |
4455 (Approximately) |
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Bankers : |
· Allahabad Bank · Andhra Bank · Axis Bank of India ·
Bank of ·
Bank of · Canara Bank ·
Central Bank of · ICICI Bank Limited · IDBI Bank Limited · Indian Bank · Indian overseas Bank · Punjab National Bank · State Bank of India · State Bank of Hyderabad · State Bank of Travancore · The Federal Bank Limited · Union Bank of India |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Statutory Auditors SNB Associates Chartered Accountants No. 12, 3rd Floor, Gemini Parsn Complex, 121, Anna Salai, Chennai – 600 006, Tamilnadu, India Cost Auditors V. Kalyanaraman Cost Accountants No. 4 (Old No. 12), |
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Subsidiaries : |
· Orchid Europe Limited, UK · Orchid Pharmaceuticals Inc., USA · Orgenus Pharma Inc., USA (Subsidiary of Orchid Pharmaceuticals Inc., USA.) · Orchid Pharma Inc./ Karalex Pharma USA, (Subsidiary of Orchid Pharmaceuticals Inc., USA) · Orchid Research Laboratories Limited, India (ORLL) · Orchid Pharmaceuticals SA (Proprietary) Limited, South Africa (OPL, SA) · Bexel Pharmaceuticals Inc., USA · Diakron Pharmaceuticals Inc., USA · Orchid Pharma Japan KK |
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Joint Venture : |
· NCPC Orchid Pharmaceuticals Company Limited, (NCPC, China) |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs.1500.000 millions |
|
|
|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70442076 |
Equity Shares |
Rs.10/- each |
Rs.704.421 millions |
|
|
|
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|
Of the above 17,376,940 Equity shares of Rs10/- each were allotted as fully paid bonus shares by capitalisation of reserves.
The reconciliation of
the number of shares outstanding as at March 31, 2012 and March 31, 2011 is set
out below:
|
Number of shares at the beginning |
31.03.2012 |
|
Add: Allotment on exercise of ESOP |
70442076 |
|
Number of shares at the end |
70442076 |
The details of
shareholder holding more than 5% shares is set out below:
|
|
as at March 31, 2012 |
|
|
Name of the
Shareholder |
No of shares |
% held |
|
K Raghavendra Rao |
6925173 |
9.83 |
|
R Vijayalakshmi |
6821155 |
9.68 |
|
Orchid Healthcare Private Limited |
3646324 |
5.18 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
704.421 |
704.421 |
704.421 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
11241.088 |
10635.825 |
9091.928 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
11945.509 |
11340.245 |
9796.349 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
17120.302 |
13215.963 |
10217.592 |
|
|
2] Foreign Currency Convertible Bonds |
0.000 |
5235.848 |
6077.446 |
|
|
TOTAL BORROWING |
17120.302 |
18451.811 |
16295.038 |
|
|
DEFERRED TAX LIABILITIES |
1711.834 |
1945.557 |
2038.094 |
|
|
Foreign Currency Monetary Items Translation difference Account |
(482.413) |
0.000 |
176.147 |
|
|
|
|
|
|
|
|
TOTAL |
30295.232 |
31737.613 |
28305.628 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
19546.829 |
16065.358 |
14634.141 |
|
|
Capital work-in-progress |
3270.908 |
3198.294 |
2514.313 |
|
|
Advance for Capital Items |
0.0000 |
2798.121 |
2170.053 |
|
|
|
|
|
|
|
|
INVESTMENT |
1489.029 |
1304.183 |
1235.652 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6235.991
|
5802.633
|
4025.273
|
|
|
Sundry Debtors |
913.093
|
4811.061
|
7162.325
|
|
|
Cash & Bank Balances |
1695.851
|
2099.639
|
3249.090
|
|
|
Other Current Assets |
30.364
|
0.000
|
0.000
|
|
|
Loans & Advances |
5804.473
|
4407.196
|
2889.279
|
|
Total
Current Assets |
14679.772
|
17120.529
|
17325.967
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
3576.329
|
3032.832
|
3064.782
|
|
|
Other Current Liabilities |
4528.870
|
2425.404
|
2911.375
|
|
|
Provisions |
586.107
|
3290.636
|
3598.341
|
|
Total
Current Liabilities |
8691.306
|
8748.872
|
9574.498
|
|
|
Net Current Assets |
5988.466
|
8371.657
|
7751.469 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
30295.232 |
31737.613 |
28305.628 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
17363.306 |
16633.449 |
22651.375 |
|
|
|
Other Income |
558.117 |
76.011 |
98.000 |
|
|
|
TOTAL (A) |
17921.423 |
16709.460 |
22749.375 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
8024.150 |
7879.583 |
7752.620 |
|
|
|
Manufacturing, Selling and Other Expenses |
-- |
4649.635 |
6472.847 |
|
|
|
Purchases of stock-in-trade |
454.638 |
-- |
-- |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(620.186) |
-- |
-- |
|
|
|
Employee benefits expense |
1546.459 |
-- |
-- |
|
|
|
Other expenses |
4399.069 |
-- |
-- |
|
|
|
Exceptional items |
838.814 |
-- |
-- |
|
|
|
Extraordinary items |
(800.000) |
-- |
-- |
|
|
|
TOTAL (B) |
13842.944 |
12529.218 |
14225.467 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4078.479 |
4180.242 |
8523.908 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1790.529 |
1157.650 |
2412.331 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2287.950 |
3022.592 |
6111.577 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1490.556 |
1284.543 |
1511.038 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
797.394 |
1738.049 |
4600.539 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(233.722) |
143.213 |
1287.143 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1031.116 |
1594.836 |
3313.396 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
600.939 |
585.915 |
283.222 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Excess provision of dividend and tax
thereon of earlier year written back |
0.000 |
(217.429) |
(24.735) |
|
|
|
Transfer to General Reserve |
600.000 |
1500.000 |
2000.000 |
|
|
|
Proposed Dividend |
(248.586) |
255.752 |
887.959 |
|
|
|
Tax on Dividend |
0.000 |
41.489 |
147.479 |
|
|
BALANCE CARRIED
TO THE B/S |
1280.641 |
600.939 |
585.915 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B Value of Imports |
8466.593 |
7258.533 |
9762.036 |
|
|
|
Export Earnings |
461.797 |
609.206 |
289.843 |
|
|
TOTAL EARNINGS |
8928.390 |
7867.739 |
10051.879 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
45945.516 |
4715.756 |
3099.750 |
|
|
|
Stores & Spares |
189.484 |
273.276 |
73.289 |
|
|
|
Capital Goods |
2304.970 |
784.127 |
613.916 |
|
|
TOTAL IMPORTS |
48439.97 |
5773.159 |
4715.756 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) (before
Extraordinary Items) |
|
|
|
|
|
|
-
Basic |
14.64 |
22.64 |
(78.82) |
|
|
|
-
Diluted |
14.46 |
18.71 |
(78.82) |
|
|
|
Earnings Per
Share (Rs.) (After
Extraordinary Items) |
|
|
|
|
|
|
-
Basic |
14.64 |
22.64 |
47.04 |
|
|
|
-
Diluted |
14.46 |
18.71 |
37.31 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2012 (Unaudited)
|
30.09.2012 (Unaudited) |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
3572.300 |
3305.500 |
|
Total Expenditure |
|
3014.200 |
2911.100 |
|
PBIDT (Excl OI) |
|
558.100 |
394.400 |
|
Other Income |
|
0.000 |
0.100 |
|
Operating Profit |
|
558.100 |
394.500 |
|
Interest |
|
713.300 |
764.700 |
|
Exceptional Items |
|
(80.800) |
462.200 |
|
PBDT |
|
(236.000) |
92.000 |
|
Depreciation |
|
399.100 |
395.500 |
|
Profit Before Tax |
|
(635.100) |
(303.500) |
|
Tax |
|
(127.100) |
(104.000) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(508.000) |
(199.500) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(508.000) |
(199.500) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
5.75 |
9.54
|
14.56
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.59 |
10.45
|
20.31
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.33 |
5.24
|
14.39
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07 |
0.15
|
0.47
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.43 |
1.63
|
1.66
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.69 |
1.96
|
1.81
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
PERFORMANCE
During 2011-12, the Company achieved a
turnover and operating income of Rs 17363.300 millions as compared to Rs
166.334 millions in 2010-11 recording a growth rate of 4.38%. The gross profit
before interest, depreciation and taxes stood at Rs 4117.300 millions (23.71%
of turnover) as compared to Rs 3973.200 millions (23.88% of turnover) of last
fiscal. After providing for interest expense of Rs 1790.500 millions (Rs
1157.600 millions previous fiscal), depreciation of Rs 1490.500 millions (Rs
1284.500 millions previous fiscal), Exceptional item Rs 838.800 millions (Rs
Nil previous fiscal) and Extraordinary item Rs 800.000 millions (Rs Nil
previous year), the profit before tax of the Company was Rs 797.400 millions
(Rs 1738.100 millions previous fiscal). The net profit after tax stood at Rs
1031.100 millions (5.94% of turnover) compared to the net profit after tax of
Rs 1594.800 millions (9.6% of turnover) in the previous fiscal.
BUSINESS OVERVIEW
During the year, the Company continued to
record a strong growth in its operational performance inspite of its API plant
in Alathur being closed for more than a month owing to the closure order from
the Tamil Nadu Pollution Control Board (TNPCB), fire accident at the R and D
centre and liquidity constraints on account of redemption of outstanding
Foreign Currency Convertible Bonds. The business model change that the Company
had initiated post the injectable business transfer to Hospira in 2010
continues to augur well with the several long-term supply contracts entered
into with large global players paving the way for continued robust earnings.
Their Active Pharmaceutical Ingredient (API) supply arrangement continued to
perform significantly well, registering higher than expected business volumes.
The Company is planning to launch several products during the current financial
year 2012-13 for the EU and US markets, which are expected to strengthen the
revenue streams for regulated generics business of the Company from the current
financial year 2012-13.
AWARDS
During the year, the Company was conferred with the following awards:
· Export Excellence Award 2010-11 by MEPZ – Special Economic Zone, Government of India.
· EXIM Achievement Award 2011 for meritorious export performance under the category Air Exports by The Tamil Chamber of Commerce, Chennai.
· Gold Patent Award for the year 2010-11 in recognition of its commendable contribution to R and D in Drug Discovery Sector by the Pharmaceutical Export Promotion Council.
· IGCW – 2011 Green Innovation Award for the outstanding research in the field of Green Chemistry and Engineering.
OVERSEAS JOINT VENTURES
NCPC Orchid Pharmaceutical Company Limited,
China the Company’s 50:50 joint venture in China, NCPC Orchid Pharmaceuticals
established for manufacture of sterile cephalosporin Active Pharmaceutical
Ingredients (API) continued to perform well. The joint venture is profitable
with a significant sales turnover of US$ 52.11 million during the year.
Subsidiaries Bexel Pharmaceuticals Inc., USA (Bexel)
During the year, Bexel became a 100%
subsidiary of the Company upon amalgamation of Orchid Research Laboratories
Limited with the Company. Bexel was incorporated basically to conduct Research
and Development activities in New Drug Discovery segment. Bexel provides all
scientific documentation to Orchid Research Laboratories Limited, which as of
March 30, 2012, stands amalgamated with the Company. The current Bexel IP
portfolio is being maintained by Orchid global Intellectual Property (IP) unit.
During the year, Bexel has conducted advanced studies on BLX-1002, while Phase
IIa clinical studies has been initiated for the indication of Non-alcoholic
fatty liver disease (NAFLD) / Non-alcoholic Steatohepatitis (NASH).
Orchid Pharmaceuticals Inc., USA
Orchid Pharmaceuticals Inc. is a wholly owned
Delaware based subsidiary of the Company and also the holding Company in the
US, under which all the operational business subsidiaries have been structured.
The Company currently has two operating Subsidiaries, namely Orgenus Pharma,
Inc., and Orchid Pharma, Inc., in the US.
Orgenus Pharma Inc. is the entity that
provides all business development and operational services for the parent
Company including the initiation of marketing alliances with partner companies,
filing of the Company’s Drug Master Files (DMFs) and Abbreviated New Drug
Applications (ANDAs) as the Importer of record for the Company with the FDA. It
continues to represent the Company for all matters relating to the review and
approval
of such filings by the FDA and handling of
logistics and product importation into the US as the Importer of Record for the
US Customs. Orchid Pharma, Inc., is the commercial entity that started directly
marketing and selling the Company’s products in the US generics market
place. Orchid Pharma Inc. has established a strong corporate image for the
Company in the US and will be launching all future (unpartnered) generics
products under the Orchid label.
Diakron Pharmaceuticals Inc., USA
During the year, the Company increased its
stake in Diakron Pharmaceuticals Inc., and holds 76.4% in the Company. Orchid’s
stake in Diakron has been a part of the original transaction which includes
direct investment and Master Services Agreement (MSA). The Company has
completed most of its MSA obligations to develop and supply clinical quantities
of Active Pharmaceutical Ingredients (API) and extended release formulations.
Orchid Europe Limited, United Kingdom
The Company’s subsidiary in Europe namely
Orchid Europe Limited (OEL) is a wholly owned subsidiary which provides
liaising support to the parent Company and its customers in Regulatory,
Pharmacovigilance, Testing and Release, Retention of samples, Service Providers
and Business Development in Europe.
Orchid Pharmaceuticals (South Africa) Pty Limited, South Africa
The Company’s wholly owned subsidiary, Orchid
Pharmaceuticals (South Africa) Pty Ltd., was incorporated mainly to register
and market the Company’s products in South Africa. The Company is in the
process of submitting dossiers for obtaining marketing approval from the
regulatory authority, MCC for various oral products and the applications are at
various stages of the registration process.
Orchid Pharma Japan K
K
The subsidiary Company in Japan has continued to make noteworthy progress during the year. At the end of the fiscal year 2011-12, there are 9 Drug Master Files (DMFs) filed with Pharmaceutical and Medical Devices Agency (PMDA) of Japan and additional Drug Master Files (DMFs) will be filed in the current financial year to meet the market needs.
During the year, the Company successfully started supplies to few Japanese Pharma Companies and business discussions are on with various companies for supply of new products and the Company is expected to make good progress on both business and regulatory fronts during the current year.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY OVERVIEW
Global pharmaceutical industry
The global pharmaceutical industry grew by of
6.6% in 2011, compared to 4.5% in 2010, and reached a market size of US$ 880
billion. The transformation of the global pharmaceutical market continues
unabated, with focus steadily shifting from developed to developing countries
and from patented drugs to generics. The overall pharmaceutical market is
anticipated to reach US$ 1.1 trillion by 2014
The US is the major pharmaceutical market,
globally. The contribution of the US to the global pharmaceutical growth
increased to 20% in 2011, compared to 17% in 2010. Ageing population and
constant demand for innovative therapies have triggered the pharmaceutical
demand in 2011 and will continue in the years to come.
Regulated markets
US
The US (US$ 320 billion market size) is the
largest pharmaceutical market in the world growing at a CAGR of around 3%. It
is also the largest generic market with a sizeable generic substitution (75% in
terms of volume). The US is expected to face the highest patent expiries (to
the tune of US$ 100 billion) over the next five years The share of the US in
global pharmaceutical spending is set to decline to 31% in 2015, from 41% in
2005.
The US market is experiencing significant drug
shortages in recent times. A total of 168 drugs are facing acute shortages. The
major reasons for the drug shortages include manufacturing constraints,
stringent manufacturing norms, consolidation in the generic drug industry and
limited supplies of some vital ingredients.
Executive orders passed by the US government
· USFDA to take measures to reduce current and future supply disruptions. It must inform the drug manufactures in advance in case of production discontinuation.
· USFDA to expedite regulatory reviews, evaluate new drug suppliers, manufacturing sites, and production changes to mitigate potential drug shortages.
· USFDA to inform The Department of Justice (DoJ) of any findings due to shortages that have led market participants to stockpile the affected drugs or sell them at exorbitant prices.
European Union
The EU5* markets have registered growth of
1-3% in 2011 and are poised to grow at an average CAGR of 2.5% up to US$ 220
billion by 2016. The European pharmaceutical market ranks second in the world
following USA. It accounts for around 17% of the total global pharma market. In
most of the European countries a considerable share of healthcare expenditure
is public expenditure. However, there has been significant regulatory changes
over the past years on account of austerity measures and attempts to reduce healthcare
expenditure. Focus is on price reduction and increasing generic substitution.
*(German, France, Italy, Spain and UK)
JAPAN
In 2011, Japan’s pharmaceutical industry
registered a growth of 5.7%. The overall Japanese Pharmaceutical Industry is
projected to grow at a CAGR of 2.6% from 2012- 2016.
Pharmerging market
The 17 ‘Pharmerging’ countries* are expected
to contribute 28% to global pharmaceutical spending by 2015. They registered a
growth of 15-17% in 2011 to reach a market value of ~US$ 170 billion. The value
contribution of the Pharmerging market has substantially increased from US$ 73
billion in 2005 to US$ 154 billion in 2010.
(*India, China, Brazil, Venezuela, Poland,
Argentina, Turkey, Mexico, Vietnam, South Africa, Thailand, Indonesia,
Romania, Egypt, Pakistan, Ukraine and
Russia.)
Active Pharmaceutical Ingredients (APIs)
Active Pharmaceutical Ingredients (API) or
bulk drugs are the principal ingredients for finished pharmaceutical products.
APIs cannot be administered directly to the patient, and other inactive
substances called excipients are added to stabilise the mixture into an end
product, which is called formulation.
The global API market can broadly be divided into
regulated and semi-regulated markets. The semi-regulated markets offer low
entry barriers in terms of regulatory requirements and intellectual property
rights.
The highly regulated markets, like the United
States, Europe and Japan have high entry barriers in terms of intellectual
property rights and regulatory requirements, including facility approvals. As a
result, there is a premium for quality and regulatory compliance, along with
relatively greater stability for both volumes and prices.
The API growth will be fuelled by rise in
demand of generics and biological drugs. The API market was valued at US$
101.08 billion in 2010, and is expected to grow at a CAGR of 7.9% from 2012 to
2016. Globally, Asia-Pacific is the third largest regional market for APIs by
revenue after the US and Europe.
API growth drivers
API suppliers in Europe and the US are facing
increasing pricing pressures due to presence of low-cost providers
in developing markets, excess big pharma
capacity and backward integration by certain generic companies.
The API outsourcing trend within the global
pharmaceutical industry remains intact as pharmaceutical companies are
increasingly looking to maintain focus on core competencies, access new
technologies, preserve capital
and ensure multiple sources of raw material
supply.
China remains the largest manufacturer of APIs
in the world, aided by large scale manufacturing capabilities and Government
support. However, quality concerns as reflected by instances of product recalls
due to contamination continue to hamper the ability of Chinese manufacturers to
source APIs to advanced markets. This works as an advantage for the Indian API
Industry
Generic drug (Formulations) industry
The global generics market reached a value of
US$ 225 billion in 2011. The patent expiries of blockbuster drugs commencing
from 2012 provides a solid base for robust growth of generics. According to
IMS, the global generics market is anticipated to reach US$ 400-450 billion by
2015. Nearly 70% of this demand will be contributed by Pharmerging economies.
The cost containment strategies implemented by
governments, shift towards affordable generics, ageing population and chronic
diseases will catalyze the generics markets.
INDIAN PHARMACEUTICAL INDUSTRY
India ranks third in terms of manufacturing
pharma products by volume. India’s pharmaceutical industry is gaining its
position as a global leader clearly topping the charts among the Indian
sciencebased industries with significant expertise in the complex field of drug
manufacture and technology. India’s pharmaceutical market has registered a
strong growth of 16% in 2012. This has been the highest growth in the past
three years. The Indian pharmaceuticals sector is poised to reach US$ 55
billion by 2020, from US$ 12.6 billion in 2009 Propelling access and acceptance
realising true potential, 2010).
India tops in exporting generic medicines. The
Indian pharma industry produces around 20% to 24% of the global generic drugs.
Around 40% of the total pharmaceutical produce is exported (55% formulation and
45% APIs).
The Indian pharmaceutical market is expected
to witness rapid and significant growth on the back of greater acceptance and
penetration of generics, enhanced export opportunities, increasing global demand,
and a large share of off-patent drugs in the future.
OUTLOOK
India’s pharmaceutical industry is at an
advantageous position compared to other emerging countries. With the advantage
of being a highly organised sector, the Indian pharmaceutical companies are
growing at the rate of 8-9% annually.
FIXED ASSETS:
Tangible Assets
· Freehold Land and Site Development
· Leasehold Land
· Buildings
· Plant and Machinery
· Factory Equipment
· Laboratory Equipment
· Office Equipment
· Furniture and Fittings
· Vehicles
Intangible Assets
· Acquired Brands
· Trademarks
· Internally Generated
· DMF and ANDA
· Computer Software
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER/ HALF YEAR ENDED SEPTEMBER 30, 2012
(Rs. In Millions)
|
|
|
Standalone |
|||
|
|
|
Unaudited |
|||
|
S.No |
Particulars |
Three months ended |
Three months ended |
Six months ended |
|
|
1 |
Income from
Operations |
|
|
|
|
|
|
a) Net Sales/Income from Operations (Net of Excise Duty) |
3305.481 |
3156.315 |
6461.796 |
|
|
|
b) Other Operating Income |
- |
415.990 |
415.990 |
|
|
|
c) Total income
from operations (Net) (a+b) |
3305.481 |
3572.305 |
6877.786 |
|
|
2 |
Expenses |
|
|
|
|
|
|
a) Cost of materials consumed |
1520.202 |
1019.328 |
2539.530 |
|
|
|
b) Purchases of stock-in-trade |
142.027 |
153.832 |
295.859 |
|
|
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(91.403) |
720.414 |
629.011 |
|
|
|
d) Employee benefit expense |
413.037 |
376.180 |
789.217 |
|
|
|
e) Depreciation/Amortisation |
395.509 |
399.126 |
794.635 |
|
|
|
f) Other Expenses |
927.227 |
744.446 |
1671.673 |
|
|
|
g) Total Expenses |
3306.599 |
3413.326 |
6719.925 |
|
|
3 |
Profit/(Loss) from operations
before other income, finance costs, exceptional items (1-2) |
(1.118) |
158.979 |
157.861 |
|
|
4 |
Other Income |
0.131 |
- |
0.131 |
|
|
5 |
Profit/(Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
(0.987) |
158.979 |
157.992 |
|
|
6 |
Finance costs |
764.705 |
713.259 |
1477.964 |
|
|
7 |
Profit/(Loss) from
ordinary activities after finance costs but before exceptional |
(765.692) |
(554.280) |
(1319.972) |
|
|
8 |
Exceptional Items - Gain/(Loss) |
462.198 |
(80.804) |
381.394 |
|
|
9 |
Profit/(Loss) from
ordinary activities before Tax (7+8) |
(303.494) |
(635.084) |
(938.578) |
|
|
10 |
Tax expenses |
|
|
|
|
|
|
- Current Tax & Deferred Tax |
(104.033) |
(127.066) |
(231.099) |
|
|
11 |
Net Profit/(Loss) from
ordinary activities after Tax (9-10) |
(199.461) |
(508.018) |
(707.479) |
|
|
12 |
Extraordinary item (net of tax expenses Rs.nil) |
- |
- |
- |
|
|
13 |
Net Profit/(Loss)
for the period (11+12) |
(199.461) |
(508.018) |
(707.479) |
|
|
14 |
Paid-up Equity Share Capital |
|
|
|
|
|
|
(Face value of Rs.10/- each) |
704.521 |
704.521 |
704.521 |
|
|
15 |
Reserves excluding Revaluation Reserves |
- |
- |
- |
|
|
16 |
Earnings per share (EPS) before extra-ordinary items of Rs.10/- each |
|
|
|
|
|
|
- Basic Rs. |
(2.83)* |
(7.21)* |
(10.04)* |
|
|
|
- Diluted Rs. |
(2.83)* |
(7.21)* |
(10.04)* |
|
|
17 |
Earnings per share (EPS) after extra-ordinary items of Rs.10/- each |
|
|
|
|
|
|
- Basic Rs. |
(2.83)* |
(7.21)* |
(10.04)* |
|
|
|
- Diluted Rs. |
(2.83)* |
(7.21)* |
(10.04)* |
|
|
A |
|||||
|
1 |
Public Shareholding |
|
|
|
|
|
|
- Number of equity shares |
47611295 |
47611295 |
47611295 |
|
|
|
- Percentage of Shareholding |
67.58 |
67.58 |
67.58 |
|
|
2 |
Promoters and Promoter group shareholding |
|
|
|
|
|
|
a. Pledged/Encumbered |
|
|
|
|
|
|
- Number of shares |
17676037 |
17110383 |
17676037 |
|
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
77.39 |
74.91 |
77.39 |
|
|
|
- Percentage of shares (as a % of the total share capital of the company) |
25.09 |
24.29 |
25.09 |
|
|
|
b. Non - Encumbered |
|
|
|
|
|
|
- Number of shares |
5164744 |
5730398 |
5164744 |
|
|
|
- Percentage of shares (as a % of the total shareholding of the promoter and promoter group) |
22.61 |
25.09 |
22.61 |
|
|
|
- Percentage of shares (as a % of the total share capital of the company) |
7.33 |
8.13 |
7.33 |
|
|
B |
INVESTOR COMPLAINTS |
3 Months ended
30.09.2012 |
|
|
Pending at the beginning of the quarter |
NIL |
|
|
Received during the quarter |
32 |
|
|
Disposed off during the quarter |
32 |
|
|
Remaining unresolved at the end of the quarter |
NIL |
AS PER WEBSITE DETAILS:
PRESS RELEASE:
Orchid Pharma to exit its Chinese JV
Strategy to consolidate manufacturing operations in India
Chennai, India | November 9, 2012
Chennai-based global pharma major, Orchid
Chemicals and Pharmaceuticals Limited (Orchid Pharma) today said that it was
exiting its 50:50 manufacturing joint venture in China.
The 50% stake that Orchid holds in the Joint Venture
(JV) company (NCPC-Orchid Pharmaceuticals) will be transferred to the partner
company (NCPC) for a total cash consideration of USD 13.9 million (RMB 87.5
million).
Orchid had in 2002 entered into a 50:50 JV
with North China Pharmaceutical Corporation (NCPC) to set up a Cephalosporin
API manufacturing facility located in Shijiazhuang, China.
Commenting on the development, Orchid’s
Chairman and Managing Director Mr. K Raghavendra Rao said, “With the local
Chinese players fast integrating, the operating conditions have grown quite
competitive in China. Moreover, the products that the JV manufactures and
markets in the local Chinese market have reached a mature stage resulting in
flat growth prospects going forward. Hence, it was a prudent decision to relinquish
our stake to the partner and exit the JV”.
Orchid Pharma registers sale of Rs 3300.000 millions in Q2 FY13
Net loss on account of working capital
constraints and higher interest outflow
Chennai, India | November 9, 2012
Financial highlights for Q2 FY13 (On Standalone basis)
•
Total income of Rs 3305.400 millions (US$ 62.53 million)
•
EBIDTA of Rs 856.700 millions (US$ 16.20 million)
• PBT
stood at a loss of Rs 303.500 millions (US$ 5.74 million)
• PAT
registered a loss of Rs 199.500 millions (US$ 3.77 million)
Financial highlights for Q2 FY13 (On consolidated basis)
•
Total income of Rs 3783.700 millions (US$ 71.57 million)
•
EBIDTA of Rs 836.500 millions (US$ 15.83 million)
• PBT
stood at a loss of Rs 339.800 millions (US$ 6.42 million)
• PAT
registered a loss of Rs 240.000 millions (US$ 4.54 million)
The above numbers include the exceptional
gain/loss on account of the profit on stake sale in the Chinese JV and the
exchange loss on Foreign Currency loans aggregating to Rs 462.200 millions
Financial highlights for H1 FY13 (On Standalone basis)
•
Total income of Rs 6877.800 millions (US$ 130.11 million)
•
EBIDTA of Rs 1334.000 millions (US$ 25.24 million)
• PBT
stood at a loss of Rs 938.500 millions (US$ 17.75 million)
• PAT
stood at a loss of Rs 707.500 millions (US$ 13.38 million)
Financial highlights for H1 FY13 (On consolidated basis)
•
Total income of Rs 7850.800 millions (US$ 148.52 million)
• EBIDTA
of Rs 1296.800 millions (US$ 24.53 million)
• PBT
stood at a loss of Rs 1007.100 millions (US$ 19.05 million)
• PAT
registered a loss of Rs 780.300 millions (US$ 14.76 million)
The above numbers include the exceptional
gain/loss on account of the profit on stake sale in the Chinese JV and the
exchange loss on Foreign Currency loans aggregating to Rs 381.400 millions
Q2 earnings (for the quarter ended September 30, 2012) - Standalone
Orchid achieved a total income of Rs 3305.400
millions (US$ 62.53 million) for the quarter ended September 30, 2012 (Q2 FY13)
in comparison to Rs 4194.900 millions (US$ 79.36 million) registered during the
corresponding quarter of the last fiscal. Earnings before Interest,
Depreciation and Tax (EBIDTA) stood at Rs 856.700 millions (US$ 16.20 million)
compared to Rs 994.700 millions (US$ 18.82 million) of the corresponding
quarter of last year. The Profit before Tax (PBT) stood at a loss of Rs 303.500
millions (US$ 5.74 million) compared to a profit of Rs 234.300 millions (US$
4.43 million) registered during the corresponding Q2 of the last fiscal. The
net profit after tax stood at a loss of Rs 199.500 millions (US$ 3.77 million)
compared to a profit of Rs 234.300 millions (US$ 4.43 million) of the
corresponding quarter of the last fiscal. Earnings per share stood at a
negative of Rs 2.83 during this period.
Q2 earnings (for the quarter ended September 30, 2012) - Consolidated
Orchid achieved a total income of Rs 3783.700
millions (US$ 71.57 million) for the quarter ended September 30, 2012 (Q2 FY13)
in comparison to Rs 4657.100 millions (US$ 88.10 million) registered during the
corresponding quarter of the last fiscal. Earnings before Interest,
Depreciation and Tax (EBIDTA) stood at Rs 836.500 millions (US$ 15.83 million)
compared to Rs 979.700 millions (US$ 18.53 million) of the corresponding
quarter of last year. The Profit before Tax (PBT) for the second quarter (Q2)
stood at a loss of Rs 339.800 millions (US$ 6.42 million) compared to a profit
of Rs 209.400 millions (US$ 3.96 million) during the corresponding Q2 of the
last fiscal. The net profit after tax stood at a loss of Rs 240.000 millions
(US$ 4.54 million) compared to a profit of Rs 207.200 millions (US$ 3.92
million) of the corresponding Q2 of the last fiscal. Earnings per share stood
at a negative of Rs 3.40 during this period.
H1 earnings (for the half year ended September 30, 2012) - Standalone
Orchid’s revenues on a standalone basis, for
the half-year (H1) ended September 30, 2012 stood at Rs 6877.800 millions (US$
130.11 million) compared to Rs 8030.800 millions (US$ 151.92 million)
registered during the corresponding period of the previous fiscal. Earnings
before Interest, Depreciation and Tax (EBIDTA) stood at Rs 1334.000 millions
(US$ 25.24 million) compared to Rs 1853.700 millions (US$ 35.07 million)
registered during the corresponding H1 of the last fiscal. The net profit after
tax stood at a loss of Rs 707.500 millions (US$ 13.38 million) compared to a
profit of Rs 389.700 millions (US$ 7.37 million) of the corresponding H1 of the
last fiscal. Earnings per share stood at a negative of Rs 10.04 during this
period.
H1 earnings (for the half year ended September 30, 2012) - Consolidated
On a consolidated basis, Orchid’s revenues for
the half-year (H1) ended September 30, 2012 stood at Rs 7850.800 millions (US$
148.52 million) compared to Rs 9149.400 millions (US$ 173.08 million)
registered during the corresponding period of last fiscal. Earnings before
Interest, Depreciation and Tax (EBIDTA) stood at Rs 1296.800 millions (US$
24.53 million) compared to Rs 1869.100 millions (US$ 35.36 million) registered
during the corresponding H1 of the last fiscal. The net profit after tax stood
at a loss of Rs 780.300 millions (US$ 14.76 million) compared to a profit of Rs
376.500 millions (US$ 7.13 million) of the corresponding H1 of the last fiscal.
Earnings per share stood at a negative of Rs 11.07 during this period.
* 1 US$ = Rs 52.86
Comment from the Chairman and Managing Director
“The increased interest outflow and the
continuing liquidity pressure leading to working capital constraints have
impacted the revenues and profitability during the second quarter / half year.
This continuing pressure will lead to the current financial year witnessing a
flat trend in terms of their overall performance. They are working on a
long-term growth strategy encompassing both the existing business verticals and
foray into new product segments which should improve the revenue and margin
profile next fiscal onwards”, said Mr K Raghavendra Rao, Chairman and Managing
Director, Orchid Chemicals and Pharmaceuticals Limited
Regulatory update
Filings
API
In the API (Active Pharmaceutical Ingredients)
space, Orchid’s cumulative filings of its US DMFs stood at 89. The break-up of
the total filings is 28 in the Cephalosporin space, 47 in NPNC space, 2 in the
Betalactam segment and 12 in the Carbapenems segment.
The cumulative filings of COS (Certificate of
Suitability) for the European market stood at 21 which includes 14 in
Cephalosporin space, 6 in NPNC space and 1 in the Betalactam segment.
Finished Dosage Forms (FDF)
Orchid’s cumulative ANDA filings for the US
market stands at 43. This includes 8 Para IV FTF (First–To–File) filings. The
break-up of the total ANDA filings is 13 in Cephalosporins space and 30 in NPNC
space.
In the EU region the cumulative count of
Marketing Authorizations (MAs) filed stood at 30. The break-up of the total MA
filings is 15 in Cephalosporin space and 15 in the NPNC space.
Approvals
The approved ANDAs count rose to 31 (including
3 tentative approvals) at the end of Q2 FY13. The break-up of the total ANDA
approval count comprises of 11 in Cephalosporin space and 20 in NPNC space.
In the EU region the cumulative count of Marketing
Authorizations (MA) approval stands at 22. The break-up of the total MA
approval count is 10 in the Cephalosporin space and 12 in the Oral NPNC space.
With staunch efforts on product development,
Orchid’s filing and approval count is poised to increase in the coming months
and quarters.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.14 |
|
|
1 |
Rs.83.27 |
|
Euro |
1 |
Rs.71.94 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
38 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.