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Drugmaker Wockhardt has completed much of its restructuring process in the US, and expects business prospects to improve this fiscal, according to a company representative.
The company took a Rs 85-crore hit in Q4 ended March 31, 2023, on account of issues involved with its US restructuring.
The company posted a net loss of Rs 237 core for the quarter under review, less than the Rs 311-crore loss in the same quarter of FY22. This was, however, more than the sequential loss of -Rs 102 crore, in the previous quarter.
Wockhardt had shut down its manufacturing facility in Illinois (US Q2 FY 23) and shifted to the contract manufacturing model. The company said it had “provided/ incurred a loss of Rs 123 crore with regard to its property, plant and equipment, Rs 80 crore provided for claims incurred/ expected claims from customers, Rs 17 crore for inventory, and other expenses of Rs 13 crore pursuant to this restructuring. The impact of this for the quarter ended March 31, 2023 is Rs 85 crore, it added.
“During the current quarter, the company has agreed to an early payment schedule for the settlement liability (involving pricing litigation in Texas, US),” it said, adding that it recorded an additional cost of Rs 11 crore due to unwinding of the discount.
Referring to a contract involving the Russian Covid-19 vaccine Sputnik, it said, “the company had accounted for a contract asset of Rs 50 crore pursuant to a contract manufacturing agreement. The customer is yet to fulfil its contractual obligations and commitments. Though the company is pursuing various options and taking necessary actions, given the uncertainty, the company has provided for this contract asset.”
Wockhardt recorded a revenue of Rs 710 crore in Q4FY23, compared to Rs 666 crore in Q4FY22, registering a growth of 7 per cent. EBITDA for the quarter was Rs 47 crore as compared to Rs (22) crore in Q4FY22.
Total revenue for the 12 months ended March 31, 2023, was Rs 2,693 crore, compared to Rs 3,239 crore last year. The loss registered for the year at -Rs 621 crore was greater than -Rs 279 crore last year.
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