Wockhardt Q1 net profit dives 83% to Rs16 crore

Wockhardt first-quarter net profit plunges 83% to Rs16 crore because of declining sales and rising expenditure amid robust growth in the drug firm’s UK business


Wockhardt's India business grew by 10% for the quarter under consideration as against the corresponding period of the last fiscal. Photo: Bloomberg
Wockhardt's India business grew by 10% for the quarter under consideration as against the corresponding period of the last fiscal. Photo: Bloomberg

New Delhi: Drug firm Wockhardt on Saturday reported a fall of 82.65% in consolidated net profit to Rs.15.89 crore for the first quarter ended 30 June, mainly on account of dip in sales and increased expenditure.

The company had posted a net profit after taxes, minority interest and share of profit of associates at Rs.91.61 crore in the same period a year ago, Wockhardt said in a BSE filing.

Consolidated total income of the company also decreased to Rs.1,090.83 crore during the quarter under review as against Rs.1,138.87 crore in the year-ago period.

The company's UK business (excluding one-time opportunity) displayed strong performance and grew by 26% in the first quarter as compared to the same period year ago, Wockhardt said.

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India business of the company grew by 10% for the quarter under consideration as against the corresponding period of the last fiscal, it added.

On the other hand, the company said, its US business contributed 18% of the global revenues and fell by 16% for the first quarter of the current fiscal.

Emerging market business saw a fall of 16% in the quarter under consideration. Irish business also fell by 18% in terms of rupee in the first quarter of 2016-17.

"International business contributed 62% of the total revenues during Q1 of FY17," the company said.

The company's three units—one at Chikalthana, and two at Waluj have received Establishment Inspection Reports with observations, Wockhardt said. "The company has initiated required steps to address the concerns raised by USFDA and is putting all efforts to resolve the matter," it added.

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