Wockhardt

The pharma company had a troubled run in Q1FY18, mainly on account of ongoing US FDA issues and a legal battle it decided to settle.

The company’s consolidated net sales fell 18% (YoY) at Rs.891 crore. EBITDA was a loss at Rs.60 crore. It ended the quarter with a net loss at Rs.410 crore for current Q1 v/s profit of Rs.16 crore in previous Q1. The silver lining here – its international business contributed 66% to total revenue, with UK growing 29%, emerging markets by 11% though India de-grew by 8%.

The revenue was impacted due to GST implementation and ongoing FDA related matters and  genercisation of some of the products of the company in USA also impacted business. And to mitigate some of the effects of the lower sales, the company has worked on cost rationalization.

But more than anything else, the company suffered an exceptional expense of Rs.358 crore  which was the amount paid for settling the commercial litigation between the company and two of its subsidiaries in relation to supply contract  with Cephalon.