Wockhardt

Wockhardt hit a new 52-week at Rs.1784.90 after it posted its consolidated net profit rose more than three times at Rs.453.55 crore v/s Rs.127.58 crore in Q2FY12. Net sales rose to Rs.1,347.44 crore v/s Rs.1,045.63 crore.  Its EBITDA Margin at 38.4% is one of the highest in the industry, much above 29.4% in Q2FY12. Its outside India business contributed 80% of the total revenues. Its revenue from US was up 47% (YoY) and UK grew 26%. Its R&D expenses for the quarter were at 6.3% to sales, a YoY growth of 74%.

 Its net debt is at Rs 1,230 crore. Realization from the sale of Nutrition Business and better profit margins got the Net Debt –Equity ratio at only 0.5. The best news, apart from the good performance is that the company has been able to clean-up its balance sheet completely. In current Q2, it completed the sale of its nutrition business to Danone, for Rs 1,280 crore and cleared the entire goodwill pertaining to its French subsidiary, Negma, of Rs 621 crore. It also wrote off the carried forward cost of certain intangibles and R&D costs of Rs 437 crore.  Its net profit for H1FY13 at Rs.816 crore, which includes an exceptional gain of Rs.32 crore, has already surpassed the net profit of FY12 at Rs.301 cr0re. Surely, current fiscal will be a year to remember.