Wockhardt hit by import ban, net down 70%

Shares of Wockhardt have fallen by 4.5% to Rs 455.3 a share on BSE

Wockhardt Ltd has reported a 70 per cent fall in quarterly profit, following a decline in its sales in the US and UK markets. The firm was hit by the ban imposed on its plants in Aurangabad during the last quarter.

The drugmaker has posted a net profit of Rs 138 crore for the three months ended September 30, compared with Rs 453 crore in the year-ago period. Revenues, too, fell 12.5 per cent from Rs 1,347 crore to Rs 1,197 crore, the company said in a statement.

On Friday, Wockhardt shares dropped 4.5 per cent to close at Rs 455.3 apiece on the BSE.

Wockhardt had said the US ban on the Waluj facility in Aurangabad could cost the company about $100 million in sales a year.

Murtaza Khorakiwala, managing director of Wockhardt, said: “The current performance has been impacted due to the recent regulatory actions. However, team Wockhardt is committed to raising the bar across all functions and revert with better performance in all areas of operations at the earliest.”

The company’s US business fell 19 per cent in the September quarter, during which it contributed 44 per cent of the company’s global revenues.

Irish market, too, recorded a decline of 37 per cent during the quarter under review. On the other hand, the UK business recorded a growth of five per cent. The India business declined by two per cent.