Mumbai, Aug. 12: Wockhardt has reported a nearly 94 per cent drop in net profits for the first quarter ended June.
The dismal performance has been attributed to the ban imposed by the US Food and Drug Administration (FDA) on a couple of its facilities, which affected sales.
Wockhardt’s consolidated net profit stood at Rs 20 crore during the quarter compared with Rs 323 crore in the same period last year.
Consolidated net sales stood at Rs 991.19 crore against Rs 1,358.37 crore in the year-ago quarter.
The company’s Waluj plant was banned from exporting products to the US by the FDA in May 2013. The regulator later issued an import alert with regard to the Chikalthana plant in Aurangabad in Maharashtra in November last year.
The company had earlier said it would take an annual hit of $100 million because of the import alert.
In a press statement, Wockhardt said during the quarter it increased its research spend, which stood at 11.2 per cent of sales at Rs 111 crore.
The company also filed 13 new product applications with the FDA, taking cumulative filings pending approval to 75, during the quarter.
The India business recorded a growth of 18 per cent, while the emerging markets business grew 10 per cent during the three-month period.
The international business contributed 70 per cent to the total revenues. The US business declined 60 per cent and now contributes close to 29 per cent to global revenues.
The shares of the pharmaceutical firm today tumbled over 4 per cent.
The scrip fell 3.81 per cent to end the day at Rs 678.70 on the BSE. On the NSE, the stock tanked 4.16 per cent to Rs 676.80.