Wockhardt net rises 26%

Cost control and tax adjustment help drug maker post better numbers despite 6% fall in overall revenue

Cost control and tax adjustment helped Wockhardt post 26 per cent growth in net profit in the March quarter on a year-on-year basis.  Net profit grew 25 per cent to Rs 43 crore.

The company’s board also gave approval to raise Rs 1,200 crore through non-convertible debentures, to refinance existing debt. Wockhardt has debt of Rs 2,400 crore.

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Sales in emerging markets and India grew but overall revenue declined six per cent to Rs 1,013 crore from Rs 1,079 crore on a year-on-year basis. In the corresponding quarter last year, Wockhardt had earned a one-off income of Rs 100 crore from sale of a drug on a contract basis in the United Kingdom market. Excluding the benefit, revenue grew 4.4 per cent on a year-on-year basis. Expenses remained flat at Rs 976 crore and profit was aided due to a tax adjustment of Rs 30 crore.  Wockhardt’s emerging markets segment grew 60 per cent in the quarter and 36 per cent in the full year.  

Domestic business grew 16 per cent but sales in the US market continued to shrink as two of its plants are under Federal Drug Administration-imposed import alert. On a full-year basis, the US business declined 11 per cent.

Wockhardt said it received two product approvals and filed 17 new drug applications with the US FDA in the last financial year.