Wockhardt, Rs 1275-crore Indian pharma giant, suffered minor setback during the first quarter ended March 2005 on account of implementation of VAT, MRP based excise duty and higher investment in R&D.
The company's consolidated net profit declined by 6.1 per cent to Rs 41.70 crore from Rs 44.40 crore in the corresponding period of last year. Its consolidated revenue for the first quarter increased by 6.5 per cent to Rs 309.60 crore from Rs 290.80 crore as its international business grew by 23 per cent. Its sales in US increased by 91 per cent to Rs 137.1 crore, but domestic sales declined by 19 per cent to Rs 89.30 crore from Rs 110.90 crore.
The company is investing Rs 125 crore in various R&D activities as against Rs 94 core in the 2004. The R&D expenditure during the first quarter of 2005 went up by 5.7 per cent to Rs 16.70 crore from Rs 15.8 crore in the corresponding period of last year. The operating profit before interest, depreciation and taxation improved by 3.5 per cent to Rs 59.9 crore from Rs 57.9 crore. The operating profit margin, however, declined to 19.3 per cent from 19.9 per cent. Higher interest burden of Rs 5.80 crore as compared to interest income of Rs 0.70 crore. Further, depreciation provision also increased by 17 per cent to Rs 10.3 crore from Rs 8.80 crore. This put pressure on profit before tax, which declined by 12 per cent to Rs 43.80 crore from Rs 49.80 crore in the corresponding period of last year.
During the first quarter Wockhardt received the marketing approval for Famotidine 10 mg, which is an OTC product. The growth in the US business likely to receive a further boost by the 10 new USFDA filings including 5 ANDAs. The total number of ANDAs pending for approval now stands at 14. The European formulation business, which is the largest contributory to the business, recorded a growth of 16 per cent. It is planning to shift manufacturing of major products of Esparma to Wockhardt UK are significantly complete now. The company has upgraded its manufacturing facilities at Wockhardt UK to support the Esparma production.
The most significant event of the quarter for the company was the launch of its Wosulin pen and cartridges. This is claimed to be India's first automatic insulin delivery device.