Wockhardt Q1 net dips to Rs 38 crore

BS 200 SCORECARD

Wockhardt Ltd has recorded a 7 per cent decline in net profit at Rs 38 crore for the first quarter ended March 31, 2005, compared with Rs 41.1 crore in the same quarter of previous year.

Total income rose to Rs 212.1 crore compared with Rs 198 crore in quarter ended March 2004.

The company has declared an annual dividend of 100 per cent for 2004. Habil Khorakiwala, chairman of Wockhardt, said: "The company maintained operating margins at 19 per cent despite the deceleration in domestic business due to confusion over the implementation of VAT and MRP-based excise duty during the period."

During the quarter under review, Wockhardt group's consolidated net profit declined by six per cent at Rs 41.7 crore compared with Rs 44.4 crore during the quarter ended March 31, 2004. Consolidated total income jumped by 9.4 per cent to Rs 318.7 crore (Rs 291.1 crore).

The company's international business recorded a 23 per cent growth. However, its domestic sales dipped 19 per cent which "dragged consolidated sales growth to 7 per cent at Rs 310 crore, " according to a press release.

Meanwhile, the company has appointed Yatendra Kumar as president - research and development - to drive its growth plans in the US and European generic formulations and active pharmaceutical ingredients (API) market.

"Half of Wockhardt's revenue comes from US and Europe," the release added. The company is investing Rs 125 crore in R&D in 2005, up from 94 crore in 2004.