Wockhardt, a Rs.4,500 crore pharma major from Mumbai, has suffered heavy setback during the second quarter ended September 2014 on account of US export ban. Its net profit declined sharply 97.4 per cent to Rs.3.36 crore from Rs.138.50 crore in the corresponding period of last year. EBDITA also moved down by 14.2 per cent to Rs.182.66 crore from Rs.212.93 crore. Its net sales went down by 20.8 per cent to Rs.947.86 crore from Rs.1196.97 crore. With lower net profit, its EPS declined to Rs.0.33 from Rs.12.63 in the last period.

Despite lower net profit, Wockhardt management has declared hefty interim equity dividend of 400 per cent.

The company's domestic sales increased by 18.1 per cent with launch of 17 new products and emerging market business grew by 4.8 per cent during the second quarter ended September 2014. Its International business contributed 67.4 per cent of the total revenue. Its UK business declined by 3.8 per cent. However, Irish market recorded a growth of 14.5 per cent and the company launched one new product in the Irish market. Its US business declined by 56.3 per cent and contributed 24 per cent of the global revenues.

The company's R&D expenditure increased significantly to Rs.110 crore which worked out to 10.7 per cent of sales. Wockhardt filed 12 patents during the quarter taking the cumulative filings to 2,065 and has been granted 16 patents.

For the first half ended September 2014, Wockhardt's consolidated net sales declined by 24.1 per cent to Rs.1,939 crore from Rs.2,555 crore in the similar period of last year. Its other operating income stood at Rs.81.30 crore as against nil in the last period. Its net profit declined sharply by 94.9 per cent to Rs.23.58 crore from Rs.461.81 crore. Its Indian business achieved growth of 18 per cent and in emerging markets it registered growth of 7.1 per cent. Its US business declined by 58.6 per cent in first half. Its US business contributed 26.6 per cent to its sales. Its European business declined by 2 per cent during first half.

Its R&D expenditure increased to Rs.221 crore and worked out to 10.9 per cent of sales. The company filed 13 new product applications with US FDA during the first half. Cumulative products pending approval with US FDA stands at 75. It launched 17 new products in India and it received approval for 4 products in UK. It filled 9 products in UK during the first half.