Wockhardt Q2 net loss widens to ₹ 23 crore

The company, which plans to raise up to ₹ 1,800 crore through private placement of non-convertible debentures, had reported a consolidated net loss of ₹ 3 crore in the same quarter of the previous fiscal

Pharma major Wockhardt reported widening of its consolidated net loss at ₹ 23 crore for the second quarter ended September 30. The company, which plans to raise up to ₹ 1,800 crore through private placement of non-convertible debentures, had reported a consolidated net loss of ₹ 3 crore in the same quarter of the previous fiscal, Wockhardt said in regulatory filings. Sales during the quarter under review stood at ₹ 1,125 crore. It was at ₹ 1,022 crore in the year-ago period, it added.

The company said its total expenses during the quarter were higher at ₹ 1,163.56 crore as against ₹ 1,104.76 crore in the corresponding period last fiscal. The board of directors in its meeting held recently approved raising of funds through issuance of non-convertible debentures or bonds on private placement basis up to an aggregate amount not exceeding ₹ 1,800 crore.

Wockhardt further said its board has also approved issuance of non-convertible non-cumulative redeemable preference shares of face value of ₹ 5 aggregating up to ₹ 500 crore on preferential basis to members of the promoter group, for which shareholder nod would be taken through postal ballot. It, however, did not specify where the funds would be utilised. The business performance of the company during the second quarter showed marked improvement driven by growth in US and emerging markets, Wockhardt said.

“Costs of on-going remedial measures, however, continued to impact profitability,” it added. India business stood at ₹ 455 crore in the quarter as against ₹ 452 crore in same period last year. It contributed 40 per cent of the global revenue, it said. The company said its US business grew by 18 per cent in rupee terms mainly on account of new products launches and increased market share of some of its products. The US business contributed 17 per cent of global revenue. On the other hand, emerging market business contributed about ₹ 144 crore, around 13 per cent of global revenue. The segment witnessed strong growth of 68 per cent in the second quarter, it said.