Wockhardt, a Rs.4,400 crore pharma and biotech major from Mumbai, has posted solid growth in profits during the second quarter ended September 2015 and its consolidated net profit increased sharply to Rs.108 crore from Rs.3.63 crore in the corresponding period of last year due to higher sales, lower foreign exchange loss and lower tax provision. EBIDTA moved up by 13.7 per cent to Rs.208 crore from Rs.183 crore. Its foreign exchange loss declined to Rs.16.06 crore from Rs.49.18 crore. However, its interest burden went up by 66.3 per cent to Rs.23.30 crore from Rs.14.01 crore. Its taxation provision declined to Rs.18.74 crore from Rs.74.98 crore. EPS worked out to Rs.9.74 as against Rs.0.33 in the last period.
Its consolidated net sales increased by 29.9 per cent to Rs.1,232 crore from Rs.948 crore. Its UK business backed by effective business development efforts achieved consistent strong quarterly performance and grew by 88 per cent. The domestic business in India improved by 22 per cent with 8 new products launched and focused sales strategies. Its US business improved by 2 per cent and contributed 19 per cent of the global revenues in second quarter. Emerging markets business improved by 32 per cent. However, Irish market remains flat in Q2.
Its R&D expenditure increased by 27 per cent to Rs.140 crore from Rs.110 crore, which worked out to 11.4 per cent of sales. It received one approval and it filed 5 ANDAs with US FDA in first half. Total of 72 ANDAs are pending for approval. In UK it made one filing and received 6 new approval during first half. It filed 147 patents during the quarter taking the cumulative filings to 2,469. It received 44 patents during the quarter and now totally holds 411 patents.
For the first half ended September 2015, Wockhardt's consolidated net sales increased by 22.3 per cent to Rs.2,372 crore from Rs.1,939 crore in the similar period of last year. Its net profit went up to Rs.222 crore from Rs.23.68 crore. EPS improved to Rs.20.11 from Rs.2.14. Its R&D expenditure increased by 28 per cent to Rs.283 crore from Rs.221 crore.
During the first half, its Indian sales improved by 24 per cent and it launched 32 new products. International business contributed 68 per cent of the total revenues during the first half despite declined of 11 per cent in US business. US business contributed 19 per cent of the total global revenue. The UK business went up sharply by 74 per cent and emerging markets business grew by 38 per cent.
The standalone net sales for the first half ended September 2015 increased by 13.7 per cent to Rs.1,083 crore from Rs.952 crore. However, it incurred a standalone net loss of Rs.64.06 crore as against a net profit of Rs.371.29 crore in the corresponding period of last year. It shown other income of Rs.443.37 crore in the second half ended September 2014.