Wockhardt has reduced its net loss to Rs 116.28 crore during the first quarter ended June 2010 from Rs 189.87 crore in the corresponding period of last year due to lower employees cost and R&D expenditure. Its net sales declined by 3.4 per cent to Rs 921.64 crore from Rs 954.15 crore. Its earnings per share worked out to negative Rs 10.63 as against negative Rs 17.35 in the last period.
The company's employees cost declined by 10 per cent to Rs 131.31 crore and its R&D cost moved down by 13per cent to Rs 15.73 crore. The EBDITA improved by 4.3 per cent to Rs 183.84 crore from Rs 176.33 crore.
The outstanding liabilities of the company are being restructured under the aegis of Corporate Debt Restructuring (CDR) Scheme. As required under the scheme the Master Restructuring Agreement (MRA) and other necessary documents have been executed and effective. The CDR scheme comprehensively covers the FCCB liabilities and crystallized derivatives/hedging liabilities. As per the CDR scheme, during the quarter, company has issued 11,486,043 non convertible cumulative redeemable preference shares of Rs 574 lakh to various banks, which are redeemable at premium in the year 2018.
Meanwhile, the company Board has decided to increase in authorized share capital from Rs 925 crore to Rs 1,125 crore by creation of 40 crore preference shares of face value of Rs 5 each. Further, the Board has also approved Foreign Currency Mandatorily Convertible Bonds (FCMCBs) upto US$ 74,087,000 in exchange of existing FCCBs. Out of the outstanding FCCBs, majority bondholders holding bonds to the tune of US$ 42 million have agreed to subscribe for the FCMCBs and same offer will be given to the balance bondholders. Further, in view of the above and on issuance of FCMCBs, the trustees who have filed winding up petition on the instruction of majority bondholders, have agreed to withdraw the said petition.