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Opto Circuits gained nearly 8 percent intraday Friday on positive outlook from the medical equipment manufacturer.
The company in its statement to shareholders said that it is optimistic of prevailing with legal claims in excess of USD 160 million against various parties that were involved in hostile takeover and subsequent restructuring and sale of its then subsidiary Cardiac Science.
The hostile takeover of Cardiac Science subsidiary in the US in October 2015 is the main cause and was an event that will be in the courts in India and United States for some time to come, it added.
Over the past two years, it has gone through significant challenges that have resulted in a decline in revenue and legal battles.
Opto is also dealing with the right-sizing of balance sheet via continued negotiations with lenders for restructuring of debt.
Unviable operational segments are being closed, it said, adding the company is taking various strategic alternatives for additional capital & business opportunities.
According to the medical equipment maker, market size of EuroCor is likely to double over next 3-5 years.
Vascular interventional business unit, EuroCar GmbH in Germany is one of global leaders in drug-coated balloon and stent devices (DCB and DES), it said. The market size for these products has grown from USD 100 million three years ago to over USD 800 million today.
Opto said profit from operations has been growing and it expects that trend to continue over next few quarters, driven by both cost savings and increase in sales and profitability.
At 14:49 hours IST, the stock was quoting at Rs 9.16, up Rs 0.21, or 2.35 percent on the BSE.
Posted by Sunil Shankar Matkar
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