Debt-ridden Wockhardt Ltd made a strong comeback with a net profit of Rs 193.9 crore for the quarter ended June, against a net loss of Rs 116.3 crore in the year-ago period. The jump in profit was on the back of 131 per cent growth in its US business. The company has a debt burden of Rs 3,200 crore.
The company's revenue increased 14.3 per cent at Rs 1,053 crore from Rs 922 crore in the same period last year. Wockhardt’s India business grew by over 24 per cent in the first quarter of FY12.
Habil Khorakiwala, chairman, Wockhardt, hoped to conclude the company's nutrition business sale before March 2012. Recently, Wockhardt had entered into an agreement with French food giant Danone to sell its nutrition business for Rs 1,600 crore.
The foreign currency convertible bond holders of the company have been engaged in a legal battle over the repayment of matured bonds worth Rs 300 crore. Against the bond holders, the Khorakiwala family had filed a suit in June to seek Rs 939 crore as compensation for defaming Wockhardt promoters through accusations made in an affidavit filed before the Bombay High Court. The civil court in Ahmedabad will hear the case on August 16.
However, Khorakiwala refused to comment on whether he would settle the Rs 300-crore debt from what the company gets from the deal with Danone.
The bond holders include BNY Corporate Trustees Services Ltd, Barclays Capital Services Ltd, QVT Fund LP, Quintessence Fund LP, Bank of Nova Scotia and Sun Pharma Global Inc.
The bondholders hold about $67 million (about Rs 300 crore) of the outstanding FCCBs worth $74 million (Rs 331 crore) in the company.
Last year, a few lenders of Wockhardt had filed winding-up petitions before the Bombay High Court. In an appeal filed by Wockhardt against the admission of the winding-up petition, the divisional bench of the court had granted an ad-interim relief and the company had to deposit Rs 115 crore with the court.
