Mumbai: Drugmaker Wockhardt Ltd posted an unexpected 23% fall in quarterly net profit on one-time derivatives-related losses, pulling down its shares.
A one-time mark-to-market charge of Rs27.9 crore saw the Mumbai-based company posting a net profit of Rs50.9 crore for the quarter ended March 2008, well below a Reuters poll estimate for Rs99.51 crore.
“The losses were due to Wockhardt’s long-term hedging instruments that were bought to reduce the interest costs for the company’s loans,” Wockhardt said in a statement.
The company did not specify how much its loans were, but said it was hedging the interest for 50% of its long-term loans. Analysts were expecting the company’s acquisitions to drive growth in the quarter.
Last year, Wockhardt acquired U.S.-based liquid generics and speciality skin products maker Morton Grove Pharmaceuticals Inc and French pharmaceutical group Negma Laboratories.
“This (Morton Grove and Negma) has enabled us to increase our operating profit by 50 percent and thus maintain a margin of 22%,” Chairman Habil Khorakiwala said in a statement.
Wockhardt shares have slipped 27% in 2008 as of 25 April, underperforming the BSE Healthcare index.