Wockhardt Q2 net loss widens to Rs 230 million; sales at Rs 11.25 bn

Pharma major Wockhardt Ltd Saturday reported widening of its consolidated net loss at Rs 230 million for the second quarter ended September 30.

The company, which plans to raise up to Rs 18 billion through private placement of non-convertible debentures, had reported a consolidated net loss of Rs 3 crore in the same quarter of the previous fiscal, Wockhardt said in regulatory filings.

Sales during the quarter under review stood at Rs 11.25 billion. It was at Rs 10.22 billion in the year-ago period, it added.

The company said its total expenses during the quarter were higher at Rs 11.6356 billion as against Rs 11.0476 billion in the corresponding period last fiscal.

The board of directors in its meeting held on Saturday approved raising of funds through issuance of non-convertible debentures or bonds on private placement basis up to an aggregate amount not exceeding Rs 18 billion.

Wockhardt further said its board has also approved issuance of non-convertible non-cumulative redeemable preference shares of face value of Rs 5 aggregating up to Rs 5 billion on preferential basis to members of the promoter group, for which shareholder nod would be taken through postal ballot.

It, however, did not specify where the funds would be utilised.

The business performance of the company during the second quarter showed marked improvement driven by growth in US and emerging markets, Wockhardt Ltd said.

"Costs of on-going remedial measures, however, continued to impact profitability," it added.

India business stood at Rs 4.55 billion in the quarter as against Rs 4.52 billion in same period last year. It contributed 40 per cent of the global revenue, it said.

The company said its US business grew by 18 per cent in rupee terms mainly on account of new products launches and increased market share of some of its products. The US business contributed 17 per cent of global revenue.

On the other hand, emerging market business contributed about Rs 1.44 billion, around 13 per cent of global revenue. The segment witnessed strong growth of 68 per cent in the second quarter, it said.