Wockhardt's Sep qtr net down 44% to Rs 55cr

Wockhardt Ltd, a leading drugmaker, has reported a 44 per cent fall in net profit in the third quarter ended September 2008, as it provided Rs 55 crore towards exchange rate fluctuation in its overseas borrowings.

The company reported a net profit of Rs 61 crore for the three months ended September 2008, as compared to a profit of Rs 108 crore in the same quarter last year. However, sales increased by 25 per cent to Rs 924 crore in the third quarter ended September 2008.

Wockhardt provided Rs 55.3 crore for exchange rate fluctuation on foreign currency borrowings, as Indian rupee depreciated rapidly against other currencies. The company had issued 1.1 million zero coupon foreign currency convertible bonds (FCCBs) of $1,000 each and currently has a cumulative liability of Rs 116.5 crore.

Wockhardt said it is evaluating options to raise equity funds to repay the bonds when its due for conversion in September 2009, but did not reveal further details.  

The company, which accounted mark-to-market (MTM) losses aggregating Rs 27.9 crore during the quarter ended March 2008, has reduced the MTM losses by Rs 1.1 crore during the current quarter.
       
“Our US and European businesses have grown and currently our international operations contribute three quarters to our overall business growing at 31per cent,” said Wockhardt chairman Habil Khorakiwala.

A company statement said its domestic business grew by 11 per cent and its overall ranking in the domestic market has gone up to 15th position, from the 19th position in 2007. Wockhardt’s in-licensing strategy of getting niche global products to India is seen as a key growth driver and has launched products such as Sammy, B-Lift, Novaphane and Mobiwok. Overall 10 brands feature in the list of ‘Top 300’ brands of the industry, which includes products such as Dexolac and Spasmo-Proxyvon.