Wockhardt, a Rs.3,900 crore plus pharma major, has reduced its consolidated net loss to Rs.153 crore during the fourth quarter ended March 2018 from Rs.207 crore in the corresponding period of last year due to cost containment and rationalisation. However, cost of on-going remedial measures, investments in R&D activities, volatility in various currencies like GBP, EURO, and US dollar had impacted the business. Its consolidated net sales improved by 17.8 per cent to Rs.1,018 crore from Rs.864 crore. EPS worked out to negative Rs.13.97 as against negative Rs.15.81 in the last period.
Wockhardt scrip declined sharply by over Rs.75 to Rs.727.80 as against its Friday close of Rs.802.85 on BSE. It opened lower at Rs.795.10 and then declined to day's lowest at Rs.717.75. The scrip touched to its yearly high at Rs.1,012 on January 1, 2018 Scrip declined to yearly low level at Rs.531.50 on August 22, 2017.
Its international business contributed 64 per cent of the total revenues during fourth quarter. Its sales in emerging market increased by 37 per cent and that in UK improved by 13 per cent due to new product launch. It is Irish business grew by 6 per cent. R&D expenditure was Rs.77 crore and worked out to 8 per cent of sales.
Wockhardt incurred heavy net loss due to exceptional provisions and lower net sales for the full year ended March 2018. Its consolidated net loss increased sharply at Rs.667 crore from Rs.226 crore in the previous year due to provision of Rs.358.19 crore for settlement with Cephalon Inc, an affiliate of Teva Pharmaceuticals USA, for a cost of British Pound 43 million in UK. Its loss before interest, depreciation, taxation and adjustments was at Rs.55 crore as against a EBIDTA of Rs.26 crore. Interest cost went up to Rs.255 crore from Rs.225 crore. Foreign exchange gain was at Rs.57 crore as against loss of Rs.13 crore in the previous year.
Its net sales also declined by 2 per cent to Rs.3,937 crore from Rs.4,015 crore due to GST. Its domestic sales declined slightly by one per cent. The company launched 12 new products in India. International sales contributed 62 per cent of the total revenue during 2017-18. Wockhardt's sales in emerging market grew by 18 per cent and Irish business improved by 7 per cent in Euro terms. Its US sales worked out to 17 per cent of its global revenues. Its R&D expenditure declined to Rs.287 crore and worked out to 7 per cent to sales. The company received 3 ANDA approvals during 2017-18 and currently 70 products are pending for approval with US FDA.
The company is raising additional capital by way one or more public or private offering for an amount not exceeding Rs.1,500 crore. Further, the board has also approved issuance of non-convertible debentures on a private placement basis up to an amount not exceeding Rs.1,200 crore for repay/prepay existing debts and general corporate purposes.