Wockhardt posted net loss of Rs 3.7 crore in the first quarter ended March 2006 compared with net profit of Rs 41.7 crore in the corresponding period of the last year. |
The poor show was mainly due to an one-time write-off and expenses of Rs 23 crore relating to inorganic growth initiatives and inadequate provisioning of chargebacks in the US amounting to Rs 38 crore. |
The company posted 44 per cent growth in profit after interest and depreciation at Rs 63 crore during the first quarter ended March 2006 as against Rs 44 crore of the corresponding quarter of the previous year. |
Chairman Habil Khorakiwala said, "Our operations during the quarter resulted in 44 per cent growth in operating profits. Our core operations continue to do well. However, we took a hit on net profit during the quarter because of the one-time write-offs. This I take as a part of our US business learning curve." |
Consolidated sales rose by 13 per cent to Rs 351 crore during the period, compared with Rs 310 crore in the corresponding period of the previous year. |
Total income from Indian operations had grown 24.79 per cent to Rs 264.7 crore during the quarter as against Rs 212.1 crore during the year-ago period. |
In India, Wockhardt's formulations business grew by 58 per cent during the period and its biotech business globally grew by over 100 per cent. |
The company aims to expand its Indian business by launching new products in cardiology, oncology and dermatology during the year. It is also exploring in-licensing opportunities in these areas. |
As far as the international business is concerned, the company's UK subsidiary launched natural insulins in Canada during the quarter. Another group company, Esparma launched Tamsulosin, a drug used in the management of prostate enlargement, on the first day after patent expiry. |
Khorakiwala said that the new product launches planned both in the UK and Germany, will fuel European growth during the year. |
In the US, the company has already received approval for Ranitidine 75 mg, the OTC version of the anti-ulcer drug. Four new products have been launched, which would power the US business, along with new product approvals expected during the year. |