Wockhardt reported a huge 94 per cent drop in its consolidated net profit at Rs.20 crore for the first quarter of 2014-15. The company’s consolidated sales for the period fell 27 per cent to Rs.991 crore.
The company has had problems with the U.S. Food & Drug Administration (FDA) which had banned its export facilities.
The fall in profitability has been due to a drop of 60 per cent in its U.S. business which contributed 29 per cent of the global revenues during the quarter. According to a company statement, Wockhardt’s international business accounted for 70 per cent of total revenues and while its U.K. business remained flat during the quarter, the Irish market grew 13 per cent.
Wockhardt’s operating profit declined by 86 per cent to Rs.61 crore and the operating margin had contracted to 6.2 per cent (31 per cent).
However, its India business grew 18 per cent and emerging markets business grew 10 per cent during the quarter.
It incurred a capital expenditure of Rs.67 crore during the quarter and increased R&D spend by 13 per cent to Rs.111 crore and its R&D spend to sales ratio is at 11.2 per cent.
On the Bombay Stock Exchange on Tuesday, Wockhardt stock reacted by 3.81 per cent to close at Rs.678.7.
