Wockhardt Q1 net down 15% to Rs 323 cr, sales slightly up
Wockhardt's first quarter consolidated net sales increased marginally to Rs 1,358 crore in April-Juner from Rs 1,341 crore in the year ago quarter.
August 14, 2013 / 16:42 IST
Moneycontrol Bureau
Wockhardt's first quarter consolidated net profit declined 15 percent year-on-year to Rs 323 crore on slower growth in sales and higher expenses.Consolidated net sales increased marginally to Rs 1,358 crore in the April-June quarter from Rs 1,341 crore, a year ago, the pharma major said on Wednesday.Wockhardt said its US business grew 11 percent in April-June, but UK business only saw 1 percent growth and Irish market declined 31 percent.Also, the India business growth was only 3 percent, with the overall emerging markets business declining 28 percent.Total expenses of the company rose 9 percent to Rs 970 crore while tax expenses rose to Rs 38 crore from Rs 24 crore, last quarter."The company increased its research spends significantly and the same is now at 7.2 percent to sales at Rs.98 crores and including capital expenditure is at 7.7 percent to sales for the quarter," Wockhardt said.Wockhardt reported a foreign exchange loss of Rs 21 crore in Q1, slightly up from Rs 19 crore in the year ago quarter.Its finance cost declined 67 percent to Rs 17 crore in first quarter. There was an exceptional profit of Rs 4.7 crore, due to reversal of redundancy provision in France.Wockhardt received an import alert from US FDA on its manufacturing plant at Waluj near Aurangabad in May and related warning letter in July. Also UK's drug regulator regulator MHRA in July issued an alert on the same plant.Even the Government of India suspended sale of Dextropropoxyphene and formulations containing the same. Wockhardt says it has challenged the suspension and the matter is now sub-judice.Also Read - Maha FDA alleges Wockhardt sold banned drug; files 7 FIRsAt 15:06 IST, Wockhardt was locked in the 5 percent upper circuit at Rs 440.25, continuing upmove for the fourth consecutive session today. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
