Mumbai: Wockhardt Ltd, a domestic maker of drugs and vaccines, saw a 62% increase in net profit to Rs102 crore for the quarter ended June on the back of a 53% increase in consolidated sales to Rs630 crore.
The company’s performance, which met analysts forecasts, was driven by strong performance across the different countries it operates in. But on a day the Bombay Stock Exchange’s health index was down, Wockhardt’s shares fell 1.44% to close at Rs383.
Europe, where the exchange value of the euro has fallen less than that of the US dollar, continues to be Wockhardt’s single largest market accounting for 56% of consolidated sales. With a presence in the top three markets in Europe—the UK, France and Germany—the firm launched 13 new products in the first half of 2007.
Wockhardt’s operating profits rose 70% year-on-year to Rs152 crore, helping the company raise its profit margin 2.5 percentage points to 24.2%.
The company said at 25%, its domestic business had outperformed the industry growth rate of 12%. It has launched four new products during the quarter, of which, two—Vitix and Viticolor—were in-licensed, patented dermatology products.
“Growth in domestic business is likely to be higher due to increased traction in existing business as well as consolidation of acquired brands (Farex and Protinex),” Mumbai-based brokerage firm Motilal Oswal Securities Ltd said in an earnings preview report earlier this month.