Wockhardt Q4 profit down 78% on import bans

Sales fell 30% to Rs 1,040 cr during the quarter

Mumbai-based Wockhardt Ltd has reported a fall of 78% in its fourth quarter profit while the profit for FY14 has declined by 47%.

The decline of net profit was attributed to import ban from US FDA and UK MHRA due to manufacturing quality lapses.

The company's January-March net profit fell to Rs 75 crore compared with Rs 335 crore a year earlier. Sales revenue fell 30% to Rs 1,038 crore in the quarter, from Rs 1,486. Consolidated revenue for FY 13-14 stood at Rs 4,830 crore, declined 14% from Rs 5,610.

In November, the US Food and Drug Administration (FDA) issued ban, against Wockhardt's Chikalthana plant in western India. The FDA had imposed a ban on the company's Waluj plant in May. Wockhardt's international business contributed 79% of the total revenues during the year.

Wockhardt's US business declined by 26% for FY 13-14 while UK business recorded a growth of 3% in FY 13-14. The India business grew by 2% in FY 13-14, while the Emerging Markets business (Including India) declined by 3% in FY 13-14.