Wockhardt posted a net loss of INR 102 Crores in Q3FY23

Drugmaker Wockhardt posted a consolidated loss of ₹102 crore for the three months ended December 31, 2022. The company posted a profit of ₹2 crore in the same period last year. It clocked revenues of ₹699 crore in the quarter under review, as compared to ₹854 crore in the corresponding quarter of the previous year. Wockhardt said, the corresponding quarter of the previous year included revenue and profitability from its vaccines business in the UK.

The company’s UK business stood at ₹223 crore in Q3FY23, contributing about 32 per cent of its global revenue. Its India business locked revenues of ₹175 crore, compared to ₹158 crore in Q3FY22. India contributed about 25 per cent of the global revenue. Its emerging markets business stood at Rs 148 crore in Q3FY23, compared to Rs 117 crore in Q2FY23, the company said. The region contributed about 21 percent of its global revenue.

Wockhardt’s US business stood at ₹91 crore in Q3FY23, a region that accounted for 13 percent of the global revenue. The company said its management had initiated steps to restructure its USA business by closing down its manufacturing facility in Illinois, and undertake its business in the region through contract manufacturing the products sold by it in US/North America by engaging USFDA approved manufacturing partners.

Accordingly, the Group provided for ₹123 crore with regard to this property, plant and equipment, ₹16 crore for inventory and other expenses of ₹9 crore (including Rs three crore during the current quarter) pursuant to this restructuring, it explained. Wockhardt has also accounted for a contract asset of ₹50 crore pursuant to a contract manufacturing agreement, it said. “The customer is yet to fulfill its contractual obligations and commitments. Though, the company is pursuing various options and taking necessary actions related to this matter, given the uncertainty, (the) company has provided for this Contract asset,” it added.