Wockhardt Q2 net loss widens to Rs 23 Crore

New Delhi: Pharma major Wockhardt Ltd has recently reported widening of its consolidated net loss at Rs 23 crore for the second quarter ended September 30 this year.

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

Sales during the quarter stood at Rs 1,125 crore. It was at Rs 1,022 crore in the year-ago period, it added.

The company said its total expenses during the quarter were higher at Rs 1,163.56 crore as against Rs 1,104.76 crore in the corresponding period last fiscal.

The board of directors in its meeting held on Saturday approved raising of funds through the issuance of non-convertible debentures or bonds on private placement basis up to an aggregate amount not exceeding Rs 1,800 crore.

Wockhardt further said its board has also approved the issuance of non-convertible non-cumulative redeemable preference shares of face value of 5 aggregating up to Rs 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 a marked improvement driven by growth in the US and emerging markets, Wockhardt Ltd said.

“Costs of on-going remedial measures, however, continued to impact profitability,” it added.

India business stood at Rs 455 crore in the quarter as against Rs 452 crore in the same period last year. It contributed 40 per cent of the global revenue, Wockhardt Ltd 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 Rs 144 crore, around 13 per cent of global revenue. The segment witnessed strong growth of 68 per cent in the second quarter, it said.