Moneycontrol Bureau
Shares of Orchid Chemicals and Pharmaceuticals rallied 6 percent intraday Wednesday as the company is exploring various options to cut down interest burden.
The pharma company in its filing to exchange says it is currently in talks with banks to explore the possibility of converting its rupee debt into dollar denominated debt.
This plan is to try and reduce the interest burden on the company which will ultimately be beneficial to the company's bottomline, it adds.
In March 2014, Corporate Debt Restructuring Empowered Group (CDR EG) had approved company's corporate debt restructuring proposal.
Orchid has total debt of Rs 3,140.60 crore as of March 2015, increased significantly compared to Rs 2,426.69 crore in March 2014.
In the quarter ended June 2015, it has reported a loss of Rs 47.56 crore against loss of Rs 148 crore in March quarter and Rs 60.14 crore in June quarter 2014. Revenue declined 10.3 percent sequentially and 8.9 percent year-on-year to Rs 253.7 crore. Finance cost at the end of June quarter was at Rs 71 crore against Rs 104.5 crore in March quarter and Rs 94.5 crore in the year-ago period.
At 15:21 hours IST, the scrip of Orchid Chemicals and Pharmaceuticals was quoting at Rs 54.10, up Rs 1.35, or 2.56 percent on the BSE.Posted by Sunil Shankar Matkar
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