Drug-maker Wockhardt Ltd clocked a net profit of Rs 162 crore, for the fourth quarter ended March 2011. The debt-saddled company had posted a net loss of Rs 565 crore in the corresponding quarter last year.
“Wockhardt's performance this year has shown significant improvement, which reflects in its operating profits, primarily driven by improved efficiencies within the organisation and the launch of new products,” said Wockhardt Chairman, Dr Habil Khorakiwala, in a company statement. The company clocked sales revenues of Rs 938 crore, as compared with Rs 871 crore in the corresponding period the previous year.
For the year ended March 2011, Wockhardt clocked consolidated sales revenue of Rs 3,751 crore, and a net profit of Rs 91 crore. It clocked consolidated revenues of Rs 4,501 crore, and a loss of Rs 1,000 crore for the 15-month period ended March 2011 – and as a result the performance in the period was not comparable with year under review, the company said.
Wind-up
Winding-up petitions have been filed by certain lenders/banks in the Bombay High Court and the company has filed an affidavit in reply. The ICICI Bank, as empowered by the Corporate Debt Restructuring process and Employee Union have filed an intervention application against the winding-up.
On March 11, 2011 the Bombay High Court admitted the winding-up petition filed by the Trustees to the Foreign Currency Convertible Bonds (FCCBs) issued by the company. Following an appeal filed by the company, the divisional bench of the Court has granted an ad-interim relief while requiring Wockhardt to deposit a sum of Rs 115 crore with the Court, which has been complied with, the company said.
During the year, Wockhardt France (Holdings) SAS and some of its subsidiaries have been placed under safeguard proceedings by the proactive initiative of the company, it said. Under the process – syndicated loan availed by Wockhardt France is being restructured and operating cost are being reduced, it explained.
Separately a new product is under development and the launch is expected in 2012, the company said.
Certain derivative/hedging contracts entered into prior to March 31, 2010 had been unilaterally terminated by the banks. The company has disputed the same and continues to treat the demand of Rs 372 crore as a contingent liability and has not acknowledged as a debt, since the liability cannot be currently ascertained even on best effort basis till the final outcome of the matter, the company said.
Wockhardt shares closed down three percent on the BSE, at Rs 337 on Thursday.