Wockhardt net dips 6%

Mumbai, April 20 | Updated: Apr 21 2005, 05:31am hrs
Wockhardt Ltd has reported a 6.1% dip in its net profit to Rs 41.7 crore for the first quarter ended March 31, 2005 (Rs 44.4 crore in the corresponding quarter last year). The turnover grew by 6.5% to Rs 309.6 crore (Rs 290.8 crore), a Wockhardt statement said.

The decline in net profit was attributed to a 19% decrease in domestic sales primarily due to the confusion over the implementation of Vat and MRP-based excise duty, Wockhardt chairman Habil Khorakiwala said in the statement. As a result, the companys operating margin and net margin dropped to 19.3% and 13.5% during the quarter compared with 19.9% and 15.3% over the corresponding quarter last year. The company, however, posted a 23% growth in its international business during the quarter. The Wockhardt stock at The Stock Exchange, Mumbai (BSE) on Wednesday opened at Rs 353 and touched an intra-day low of Rs 338.40 to close at Rs 342.

Despite the decline in the domestic sales, the companys diabetology portfolio grew by 25% during the quarter. Wosulin, Wockhardts recombinant insulin, was rated among the top 20 new introductions in the Indian market during the past 24 months. During the quarter, the company filed five ANDAs (abbreviated new drug applications) and five DMFs (drug master files) with US FDA. It received the approval of US FDA for marketing the OTC version of famotidine, taking the number of Wockhardt products in the US to five, the statement said.