AstraZeneca Pharma India jumped 5.20% to Rs 837.25 at 15:27 IST on BSE after the company said its management unveiled a comprehensive business strategy plan for returning the company to sustainable profitability.
The announcement was made during trading hours today, 6 May 2013.
Meanwhile, the BSE Sensex was up 97.40 points, or 0.50%, to 19,673.04.
On BSE, 2.48 lakh shares were traded in the counter as against an average daily volume of 31,102 shares in the past one quarter.
The stock hit a high of Rs 899.70 and a low of Rs 800 so far during the day. The stock had hit a 52-week high of Rs 2,068 on 4 May 2012. The stock had hit a 52-week low of Rs 595 on 26 March 2013.
The stock had outperformed the market over the past one month till 3 May 2013, rising 14.67% compared with the Sensex's 4.12% rise. The scrip had, however, underperformed the market in past one quarter, sliding 40.69% as against Sensex's 1.04% fall.
The small-cap company has an equity capital of Rs 5 crore. Face value per share is Rs 2.
At the special board meeting held today, 6 May 2013, the company's management presented a comprehensive business strategy plan for returning the company to sustainable profitability.
As part of the plan, the management proposed commencing operations at the new tablet facility. The management also proposed retrieving market share of the company's products, supplies of which were interrupted last year.
The plan also included further strengthening brand presence, enhancing sales force effectiveness and improved cost management.
The company said its promoter, AstraZeneca Pharmaceuticals AB Sweden, has decided to provide a voluntary non-repayable financial grant of approximately Rs 119.20 crore to 140.40 crore over the three year period ending March 2016 under a subvention agreement. The first tranch of Rs 74 crore will be provided to the company in the current financial year ending March 2014. Management has factored this voluntary non-repayable grant by the promoter in its business plan, AstraZeneca Pharma India said in statement.
Management is reasonable confident, barring unforeseen circumstances, that the above strategy plan will enable the company to achieve in the medium term revenue growth ahead of market and return to profitability, the company said.
Astrazeneca Pharma India reported net loss of Rs 18.58 crore in Q4 March 2013 as against net loss of Rs 33.01 crore in Q4 March 2012. Net sales rose 3.45% to Rs 94.85 crore in Q4 March 2013 over Q4 March 2012.
AstraZeneca Pharma India is one of the world's leading pharmaceutical companies, with a broad range of medicines designed to fight disease in important areas of healthcare. AstraZeneca Pharma India is involved in both the manufacturing and marketing of medicines.
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