Wockhardt hits the roof after turnaround Q4 show

Wockhardt hit an upper circuit of 5% at Rs 266.60 after the company recorded a consolidated net profit of Rs 48.29 crore in Q4 March 2020 as against a net loss of Rs 14.47 crore in Q4 March 2019.

Consolidated net sales dropped 20.25% to Rs 686.93 crore in Q4 March 2020 as compared to Rs 861.34 crore in Q4 March 2019. The Q4 earnings was announced during trading hours today, 11 May 2020.

EBITDA rose 8.82% to Rs 37 crore in Q4 March 2020 over Rs 34 crore in Q4 March 2019. EBITDA margin improved to 4.6% in Q4 March 2020 from 3.5% in Q4 March 2019.

Research & Development (R&D) expenditure slumped 37.68% to Rs 43 crore in Q4 March 2020 as against Rs 69 crore in Q4 March 2019. During the quarter, the firm's capital expenditure stood at Rs 56 crore.

During the year ended FY20, the company repaid Rs 813 crore towards various long-term debt obligations as per schedule. Net Debt-Equity ratio as on 31 March 2020 stood at 0.84.

Meanwhile, the pharma company said it plans to raise Rs 1,850 crore by sale of part of portfolio of its domestic branded business to Dr Reddy's Laboratories. During the quarter, the shareholders of Wockhardt on 16 March 2020, approved the intended sale of part of the domestic branded business comprising of 62 products and related business, assets and liabilities including manufacturing facility at Baddi, Himachal Pradesh in India for a consideration of Rs 1,850 crore to Dr Reddy's Laboratories.

The company's continued pursuit in creating strong Intellectual Property (IP) base resulted into filing of 3 patents during the quarter ended 31 March 2020 taking the cumulative filings to 3,165. The company was granted 5 patents during the quarter and now holds 722 patents.

Wockhardt is a global pharmaceutical and biotechnology organization, providing affordable, high-quality medicines.

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