Home > companies > people > Wockhardt posts Rs409.66 crore loss in June quarter

Mumbai: Wockhardt Ltd reported a net loss of Rs409.66 crore in the three months ended 30 June due to lower sales, a one-time litigation charge, and higher costs on research and development (R&D) and remedial measures at manufacturing facilities.

In the corresponding period a year ago, the company posted a net profit of Rs10.29 crore.

The drug maker booked a one-time loss of Rs358.19 crore in the quarter due to settlement of a litigation relating to supply contract for cancer drug Trisenox with Teva Pharmaceuticals USA Inc.’s affiliate Cephalon Inc. Excluding this one-time hit, the company’s loss before tax was Rs121.34 crore.

Revenue declined 18.3% to Rs891.06 crore during the quarter from 1,090.83 crore a year ago. However, revenue was up 3.2% sequentially.

Ongoing expenses on remedial measures at plants facing compliance issues with the US Food and Drug Administration (FDA) and R&D initiatives impacted profitability but the company’s focus on cost cuts and rationalization helped it reduce losses on quarter-on-quarter basis, Wockhardt said in a release.

Sales were down year-on-year because of de-stocking ahead of implementation of Goods and Services Tax (GST) in India and weak US business due to regulatory issues and pricing pressure. However, a 29% growth in UK pushed up sales sequentially, the company said.

The company spent Rs72 crore on R&D during the quarter, accounting for 8% of sales, and capital expenditure stood at Rs51 crore.

At 2:20pm, shares of Wockhardt were trading down 2.63% at Rs588.55 on the BSE, while benchmark Sensex index was down 0.16% at 32,522.23 points.

Subscribe to newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaper Livemint.com is now on Telegram. Join Livemint channel in your Telegram and stay updated

My Reads Logout