Wockhardt gains marginally as results fail to impress

Wockhardt the talk of the town, has declared its Q4 results. The firm is already in talks as it has got FIPB (Foreign Investment Promotion Board) approval for FDI (Foreign Direct Investment). Although the sales of Wockhardt have increased, as compared to corresponding quarter, Net income from operation has declined by 6 per cent, and stands at Rs 1013.3 crores.  EBITDA for the quarter is marginally down by 3 per cent, and stands at Rs 74.03 crores. Profits were recorded at Rs 42.9 crores, which is again down by 30 per cent.

On a (YoY) basis, the Net Sales has increased by 1 per cent and stands at Rs 4461.43 crores. However, the EBITDA has declined by 37 per cent. The major reason for such a tragic EBITDA has been the cost of raw material which has increased by 19 per cent. The Company has recorded a consolidated Net profit of Rs 325. 66 crores, which saw a steep decline of 20 per cent.

Wockhardt is a global, pharmaceutical and biotechnology company. The company has 7 hospitals across India. Wockhardt's market presence covers formulations, bio pharmaceuticals, nutrition products, vaccines and active pharmaceutical ingredients (APIs). 

Wockhardt has a debt of around Rs 2500 crores. The company is raising Rs 1,200 crore through non-convertible debentures, to refinance existing debt.Also the FIPB has cleared the FDI in Wockhardt. Emerging markets have seen an increase of 59 per cent in its growth, which has made the scrip fundamentally strong for the long time investment.

The shares on the bourses are trading at Rs 952.95, up by 1.25 per cent.