Bitter pill for Wockhardt after dismal Q4 result

Wockhardt fell 3.52% to Rs 689.95 at 12:49 IST on BSE after the company reported consolidated net loss of Rs 174.72 crore in Q4 March 2017, sharply higher than net loss of Rs 5.38 crore in Q4 March 2016.

The result was announced after market hours yesterday, 4 May 2017.

Meanwhile, the S&P BSE Sensex was down 208.45 points, or 0.69% to 29,917.76. The S&P BSE Mid-Cap index was down 97.57 points, or 0.66% to 14,783.27.

On the BSE, 1.68 lakh shares were traded in the counter so far, compared with average daily volumes of 4.29 lakh shares in the past one quarter. The stock had hit a high of Rs 697.35 and a low of Rs 683.60 so far during the day. The stock hit a 52-week high of Rs 1,129 on 21 July 2016. The stock hit a 52-week low of Rs 627 on 27 December 2016.

The mid-cap company has equity capital of Rs 55.27 crore. Face value per share is Rs 5.

Wockhardt's consolidated total income fell 10.53% to Rs 919.82 crore in Q4 March 2017 over Q4 March 2016.

On a consolidated basis, Wockhardt's earnings before interest, taxation, depreciation and amortization (EBITDA) loss was Rs 177 crore in Q4 March 2017 as against the EBITDA profit of Rs 72 crore in Q4 March 2016.

Wockhardt said that during the year, certain polito-economic issues beyond the control of the company like Brexit in UK and consequent volatility in various currencies like GBP, INR, Euro, demonetisation in India and ongoing US FDA related matters had adversely affected the revenue growth. Whereas the company had a one time opportunity of business in UK in the previous year, growth in UK in the current year remained subdued due to such polito-economic adversities.

In USA, genercisation of some of the products of the company also impacted business. While clear focus on cost containments and rationalisation gave positive impact, on-going expenses on remedial measures (for US FDA related issues) impacted the profitability. The company's performance during the quarter was affected by subdued business in US & UK market, continued impact on account of Brexit and remediation costs.

Wockhardt's UK business in GBP terms excluding one time opportunity grew by 8% in the year ended 31 March 2017 (FY 2017) compared to FY 2016. The company made 7 new fillings and received 3 new approvals in UK market in FY 2017.

Wockhardt's India business grew by 6% in FY 2017. 24 new products were launched in FY 2017 in line with focused strategies on various therapies and new products launches. India business during Q4 March 2017 de-grew by 4% in comparison to Q4 March 2016 mainly on account of demonetisation.

Emerging market business of the company continued to grow by 15% in Q4 March 2017 compared to Q4 March 2016. International business contributed 62% of the total revenues during the Q4 March 2017.

Meanwhile, the board of directors of the company has approved raising of additional capital by way of one or more public or private offerings including through a Qualified Institutions Placement (QIP) to eligible investors through an issuance of equity shares or other eligible securities for an amount not exceeding Rs 1000 crore.

Wockhardt is a global pharmaceutical and biotech company with presence in USA, UK, Ireland, Mexico, Russia and many other countries. It has manufacturing and research facilities in India, USA & UK and a manufacturing facility in Ireland. Wockhardt has a significant presence in USA, Europe and India, with 62% of its global revenues coming from international businesses.

Powered by Capital Market - Live News