New Delhi: Debt-stricken Wockhardt Ltd., India’s sixth largest drug firm by revenue, posted heavy losses for the year ended 31 December as well as in the first quarter of 2009 ended 31 March.
The company’s losses for 2008 stood at Rs139 crore as opposed to a Rs386 crore net profit it made in 2007.
Its mark-to-market losses were at Rs581 crore due to a sharp depreciation of the rupee. Mark to market (MTM) is an accounting practice of assigning a value to a financial instrument, based on the current market price for that instrument.
In the first quarter of 2009, Wockhardt posted a loss of Rs20.2 crore with a mark-to-market loss of Rs32 crore. In the same quarter of the previous year, Wockhardt had posted a profit of Rs51 crore.
“With 73% of our turnover coming from our international operations, in the normal course of the business, it was prudent to hedge our foreign exchange exposure. But due to the meltdown in the global markets and the consequent currency volatility, we had to make provisions for MTM losses, which had a marked impact on our bottom line,” said Wockhardt chairman, Habil Khorakiwala in a press release.
“Wockhardt has applied to its lending banks for Corporate Debt Restructuring (CDR) and the same has been admitted..,” he added.