Import bans impact Wockhardt’s profit

Wockhardt Q4 Net plunges 78 pc to Rs 74.45 crore

Wockhardt announced a drop of 78 per cent in its net profit for the fourth quarter of 2013-14 at Rs.74.45 crore owing to the import bans in place from the U.S. and the U.K. The U.S. is Wockhardt’s largest market.

Total income was down 30 per cent at Rs.1,038.67 crore. The operating profit was down 83 per cent at Rs.82.9 crore.

For the whole of 2013-14, Wockhardt reported a drop of 47.2 per cent in its net profit at Rs.840.71 crore while total income declined by 14 per cent to Rs.4,830.36 crore. Operating profit was down 51 per cent at Rs.890.67 crore

During the year, the company received

>regulatory alerts from the U.S. Food & Drug Administration (FDA) on two of its manufacturing units in Aurangabad. A statement from Wockhardt said the company also >received restricted GMP certificate from the U.K. MHRA (Medical & Healthcare Products Regulatory Agency) for its manufacturing facilities at Aurangabad and Daman. The UKMHRA has, however, allowed the company to manufacture and supply 21 products.

The company said that during the year, the company “has reviewed its technical operations and as a result of the same, has directed its energies into strengthening and upgrading its quality & manufacturing operations.’’

On the Bombay Stock Exchange on Monday, the Wockhardt scrip reacted by 2.64 per cent to close at Rs.699.6.