Wockhardt Q2 profit falls 81.6% to Rs17.02 crore
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Mumbai: Wockhardt Ltd reported a consolidated net profit of Rs17.02 crore in the September quarter, down 81.6% from Rs92.45 crore a year ago, because of lower sales, weak operating margin and rise in interest cost.
The company’s net sales declined 13.4% to Rs1,064.69 crore from Rs1,229.59 crore a year ago.
The fall in Wockhardt’s earnings in the September quarter is mainly due to the high base of last year when it had certain one-time gains, the company said in a statement.
Excluding the one-offs, net profit and sales were up 6% and 1% on year, respectively, the company said.
Operating margin shrank to 9.4% during the quarter from 16.2% a year ago, while finance costs surged 86.4% to Rs56.37 crore.
The company’s UK business, which accounts for 25% of total sales, grew 8% on year and domestic sales rose 15%. Wockhardt launched 10 products in India during the quarter. Spending on research and development (R&D) was Rs99 crore, which was 9% of sales, whereas capital expenditure stood at Rs88 crore. Total expenditure fell 5.9% on year to Rs1,002.54 crore.