Wockhardt, a Rs.4,400 crore plus pharma giant, has suffered setback during the fourth quarter ended Marach 2016 due to lower net sales and higher interest cost. Its consolidated net sales declined by 6.1 per cent to Rs.1,013 crore from Rs.1,079 crore in the corresponding period of last year. EBDITA declined by 38.5 per cent to Rs.91.33 crore from Rs.148.62 crore.
Its net profit, however, increased by 25.9 per cent to Rs.42.90 crore from Rs.34.08 crore mainly due to lower foreign exchange loss of Rs.5.20 crore as against Rs.39.80 crore in the similar quarter of last year. Further, it shown tax credit of Rs.29.53 crore as against tax provision of Rs.27.11 crore. Its interest burden increased by 150 per cent to Rs.35.71 crore from Rs.14.30 crore. The Board has approved the proposal to raise Rs.1,200 crore through non-convertible debentures.
Wockhardt scrip opened lower at Rs.918 on BSE today as against its previous day's close of Rs.937.65 due to poor performance. Scrip touched to day's highest level at Rs.962 and then declined to day's lowest level at Rs.906 in the morning session.
The sales in emerging market grew by 59 per cent and that in domestic market moved up by 16 per cent with launch of 6 new products. Its UK business (excluding one-time opportunity) improved by 40 per cent to Pound 28 million and its US business contributed 22 per cent of the the Irish business declined by 8 per cent in rupee terms. Global revenues. Its R&D spending stood at Rs.73 crore during the fourth quarter ended March 2016, representing 7 per cent of sales.
For the full year ended March 2016, Wockhardt's net sales increased marginally by 1.4 per cent to Rs.4,461 crore from Rs.4,400 crore in the previous year. Emerging markets business improved by 36 per cent and domestic business by 16 per cent, with launch of 48 new products. US business contributed 22 per cent to its total revenue. The Irish business declined by 6 per cent in Indian rupee terms
Its R&D expenditure reached at Rs.498 crore and worked out to 11 per cent of sales. Its capital expenditure was at Rs.491 crore. It received 2 approvals in US and has filed 17 ANDAs with US FDA during 2015-16, taking it to total of 84 ANDAs pending for approval. It filed 2 new product in UK and received 10 new approvals from UK. It filed 43 patents during fourth quarter and cumulative fillings reached at 2,579. It received 10 patents during the quarter and now totally holds 441 patents.
Wockhardt's EBDITA declined by 31.2 per cent to Rs.615.20 crore during 2015-16 from Rs.893.65 crore Its other operating income was nil during the year as against Rs.81.30 crore and its other income increased to Rs.96.95 crore from Rs.66.55 crore. Employees cost went up by 8.7 per cent to Rs.944.30 core from Rs.868.87 crore. Foreign exchange loss declined to Rs.14.42 crore from Rs.117.70 crore, but interest burden went up sharply by 83.3 per cent to Rs.101.21 crore from Rs.55.21 crore. Tax provision was at Rs.25.48 crore as against Rs.162.65 crore. Its net profit declined by 19.6 per cent to Rs.325.66 croer from Rs.404.91 crore.