The Hindu Business Line : Wockhardt's Q1 net declines amid VAT confusion

The total income increased from Rs 198 crore in Q1 last year to Rs 212 crore for the three months ended March 31, 2005. The group's consolidated results also saw the net profit dipping to Rs 41.7 crore for the quarter ended March 31, 2005 compared to Rs 44.4 crore in the year-ago period.

Wockhardt's international business posted a 23 per cent growth during the first quarter ended March 31, 2005. However, a 19 per cent dip in domestic sales dragged the consolidated sales growth to 7 per cent, a company communiqué said.

"Wockhardt maintained operating margins at 19 per cent, despite the deceleration in domestic business due to confusion over the implementation of VAT and MRP-based excise duty during the period," the Wockhardt Chairman, Mr Habil Khorakiwala, said.

For the year 2004, Wockhardt had declared an annual dividend of 100 per cent, the company said.

Meanwhile, Dr Yatendra Kumar has been appointed President of Research and Development (R&D) to drive Wockhardt's growth in the generic formulations and active pharmaceutical ingredients (API) markets in the US and Europe.Dr Kumar has over 100 patents in his name and has published 22 research papers during a long research career in US universities and Astra of Sweden, the company said.

Wockhardt's US thrust gathered momentum during the quarter with the filing of five Abbreviated New Drug Applications and five Drug Master Files with the US Food and Drug Administration (FDA).

It received the approval of US FDA for marketing the over-the-counter version of famotidine, taking the number of Wockhardt products in the US to five.

Wockhardt also established a new strategic business unit to drive its biotechnology business during the period with Mr Dinesh Dua as its President.

Wockhardt has received 17 registrations for its biopharmaceuticals and 36 registrations are being pursued in various overseas markets. Within India, the diabetology portfolio grew by 25 per cent during the quarter.

And Wosulin, Wockhardt's recombinant insulin, was rated among the top 20 new introductions in the Indian market during the past 24 months, the company said.

Power brands accounted for 82 per cent of the domestic business. Wockhardt also launched Wosulin Pen, India's first automatic insulin delivery device with a recombinant insulin cartridge, during the quarter. Wockhardt is investing Rs 125 crore in R&D in 2005, up from Rs 94 crore in 2004. Half of Wockhardt's revenues come from the US and Europe.

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