Wockhardt posts Rs53.91 crore loss in December quarter
Mumbai: Wockhardt Ltd reported a loss of Rs53.91 crore in the quarter ended December, as against a net profit of Rs72.04 crore in the same period a year ago as US and India business were hit by regulatory issues and demonetisation of high-value currency notes by the government in November, respectively.
This is the company’s first quarterly loss in more than four years. It had posted loss of Rs191.64 crore in the quarter ended March 2012, according to Bloomberg data.
Net sales of the pharmaceutical company fell 7.35% to Rs995.56 crore in the December quarter from Rs1,074.51 crore a year ago.
“The company’s performance during the quarter was affected by subdued business in US market, demonetisation in India and continued remediation costs (at plants facing regulatory issues),” Wockhardt said in its earnings press release.
Three facilities of Wockhardt are under an import ban in the US because of violations of good manufacturing practices. The company’s formulations units at Chikalthana and Waluj in Maharashtra have been under the US Food and Drug Administration’s (FDA) import alert since 2013, while its bulk drug plant at Ankleshwar in Gujarat was issued an import alert in August 2016.
The US regulator also observed violation of manufacturing norms at the company’s formulations plant in Shendra, Maharashtra, earlier this year. In November 2016, Wockhardt received a warning letter from US FDA for a facility of its indirect subsidiary, CP Pharmaceuticals, at Wrexham in the UK.
India business of the company grew by 5% from a year ago but declined 18% sequentially mainly on account of demonetisation, Wockhardt said.
The other factors that weighed on the company’s earnings during the quarter were a 91% jump in interest cost, 55% drop in other income and a foreign exchange loss of Rs17.17 crore.