Wockhardt net dips 23% on MTM charge

A one-time, mark-to-market (MTM) charge of Rs 27.9 crore led to a dip in the company's net profit. However, income from operations was Rs 785.7 crore, 50 per cent higher than the Rs 522.8 crore posted in the year-ago period, according to consolidated figures.

"The company has entered into hedging instruments, which are long term in nature to reduce the interest cost for loans, which the company has taken in the past and is outstanding as on March 31, 2008. According to the risk management policy, the company is hedging the interest for 50 per cent of the long-term loans," said Wockhardt in a press release.

 

The company does not hold or issue derivatives financial instruments for trading or speculative purposes and the same has been treated as an extraordinary item, it said.

"The acquisition of Negma Laboratories in France and Morton Grove Pharmaceuticals in the US enabled us to increase our operating profit by 50 per cent and thus maintain a margin of 22 per cent," said Wockhardt Chairman Habil Khorakiwala.