Wockhardt, a Rs.5,600 crore pharma giant, has suffered major setback due to quality problem and its consolidated net profit declined sharply by 69.5 per cent to Rs.138.50 crore during the second quarter ended September 2013 from Rs.453.55 crore in the corresponding period of last year. Its EBDITA nosedived by 62.1 per cent to Rs.196.06 crore from Rs.517.02 crore. The company's consolidated net sales also declined by 11.2 per cent to Rs.1,197 crore from Rs.1,347 crore. Due to lower profits its EPS declined to Rs.12.63 from Rs.41.44 in the last period.
Despite poor performance, the board of directors has recommended an interim dividend of 100 per cent of equity share of Rs.5 each. Wockhardt share, which touched to its yearly peak level at Rs.2166 in March 2013 on BSE, is currently moving around Rs.460 due to quality problems.
Its interest cost declined by 65.2 per cent to Rs.18.90 crore during the quarter under review. It provided Rs.25.09 crore for exchange loss as compared to exchange gain of Rs.36.70 crore in the similar quarter of last year. Further, the company has shown a tax credit of Rs.8.78 crore as against provision of Rs.86.81 crore.
Recently the company received UKMHRA's restricted GMP certificate for manufacturing facility situated Kadaiya, Daman. It also received UKMHRA's restricted GMP certificate for it facility at Chikhalthana, Aurangabad whereby the company is allowed to manufacture and supply 10 products in the UK and European markets. UKMHRA has also issued a drug recall of 5 products supplied from the said unit.
For the first half ended September 2013, Wockhardt's consolidated net sales declined by 5 per cent to Rs.2,555 crore from Rs.2,689 crore in the same period of last year. Its net profit declined sharply by 44.5 per cent to Rs.461.81 crore from Rs.831.52 crore and EPS worked out to Rs.42.14 as against Rs.75.98 in the last period. It incurred a forex loss of Rs.46.06 crore as against a gain of Rs.17.95 crore. However, it reduced its interest cost significantly to Rs.36.30 crore from Rs.107.27 crore.