Wockhardt, a Rs.4,450 crore plus pharma major, has suffered heavy setback during the first quarter ended June 2016 and its consolidated net profit declined sharply by 82.7 per cent to Rs.15.89 crore from Rs.91.61 crore in the corresponding period of last year. Its EBDITA also declined by 40.6 per cent to Rs.102.14 from Rs.171.83 crore. Due to lower profit, EPS moved down to Rs.1.44 as against Rs.8.36 in the last period.

With poor financial performance in Q1, Wockhardt scrip declined over 4 per cent or Rs.34 to Rs.776 on BSE today in the morning session. Market capitalization worked out to Rs.8,633 crore. Its equity capital stood at Rs.55.25 crore.

The company's interest cost went up by 103 per cent to Rs.48.58 crore in the first quarter ended June 2016 from Rs.23.88 crore and it incurred a forex loss of Rs.9.90 as against forex gain of Rs.15.04 crore. However, the company shown other operating income of Rs.26.82 crore as against nil in the lat period and other income of Rs.16.90 crore as compared to Rs.6.39 crore. Further, it shown tax credit of Rs.9.42 crore as against tax provision of Rs.31.04 crore in the similar quarter of last year. Its R&D expenditure touched to Rs.108 crore and worked out to 10 per cent of sales.  

Wockhardt's UK business improved by 26 per cent with filing of 3 new drugs and one approval for new product. US business declined by 16 per cent and contributed 18 per cent of the global revenues and emerging market business also declined by 16 per cent. The Irish business declined by 18 per cent. International business contributed 62 per cent of the total revenues.

Its domestic business increased by 10 per cent due to new launches and focused strategies on various therapies. It launched 11 new products during the quarter under review. It filed 97 patents taking the cumulative filings to 2676. It received patents for 14 products and currently it is holding 455 patents.

Wockhardt's three units namely L-1 Chikalthana facility, H-14/2 Waluj facility and B-15/2 Waluj facility in Maharashtra have received Establishment Inspection Report (EIR) with observations. The company received US FDA import alert 66-40 on August 5, 2016 for its facility for API located in Ankleshwar, Gujarat. It has initiated required steps to address the concerns raised by US FDA and is putting all efforts to resolve the matter.